The Adevinta deal was proposed in July 2020 and has now been completed, making the Oslo business the third owner of Autotrader Group in 13 months.
Adevinta has digital platforms in 16 countries and after the purchases from eBay Classified Group, will cover 20 countries and become the largest online classified business in the world.
At the same time, the deal will make eBay Classified Group the biggest shareholder of Adevinta, with 44 per cent of the shares and about 33 per cent of the voting rights.
In return, eBay Classified Group will receive the 540 million Adevinta shares plus $US2.5 billion in cash. The deal values the combined classified business at $9.2 billion.
Adevinta gets 12 classified brands operating in 13 countries (plus businesses in a further three countries), including Australian automotive classified businesses Autotrader and CarsGuide and general classified site Gumtree.
It also has online vehicle marketplace businesses in Denmark, Germany, Italy and the UK, with general classifieds in countries including Belgium, Singapore, South Africa, Ireland, Poland, Canada, the Netherlands and Mexico.
In a statement, eBay Classified Group and Adevinta said the deal will realise between $US150 million and $US185 million in annual synergies within three years.
eBay Classified Group CEO Jamie Iannone said: “We are pleased we reached an agreement with Adevinta that brings together two great companies.”
eBay Classifieds Group senior vice president and general manager Alessandro Coppo said the deal was testament to the growth and potential of the company’s classifieds business.
“We are excited for our local classifieds brands to join Adevinta and shape a global leader in an industry full of potential,” he said.
Autotrader Group was bought from Cox Automotive Australia in June last year by eBay Classifieds Group. Cox Automotive sold out of automotive media in line with its strategy to concentrate on dealer solutions in the US, UK and Australia. eBay Classified Group already owned Gumtree Australia.
Australia’s management of the new Adevinta-led group remains unchanged with managing director Mark Kehoe, previously managing director of Gumtree, who replaced former CEO Shaun Cornelius in May this year.
The sale is subject to regulatory approvals and customary closing conditions, including approval by stockholders of Adevinta, and consultation with competent works councils, other employee representation bodies or employees, where required.
Adevinta is majority owned by Schibsted ASA, which has agreed to vote in favor of the transaction.
Related to the transaction, Schibsted has entered into an agreement with Adevinta to acquire eBay’s classifieds entity in Denmark, including leading Danish marketplaces DBA.dk and Bilbasen.dk, once the transaction between eBay Classified Group and Adevinta closes.
By Neil Dowling
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