E-commerce company eBay has confirmed that it is selling its classifieds business to Adevinta for approximately $9.2 billion. Adevinta is an online classifieds firm based on Oslo, Norway, running digital marketplaces in 15 countries.
The transaction comprises $2.5 billion in cash to be paid to eBay, plus approximately 540 million Adevinta shares. After completion of the deal, eBay will have approximately 44% in equity shares in the company and about 33.3% of voting stake. The sell-off also makes eBay the largest shareholder of Adevinta. In a statement, Jamie Iannone, Chief Executive Officer of eBay, said:
“We are pleased we reached an agreement with Adevinta that brings together two great companies (...). eBay believes strongly in the power of community and connections between people, which has been essential to our Classifieds businesses globally. This sale creates short-term and long-term value for shareholders and customers, while allowing us to participate in the future potential of the Classifieds business.”
The amalgamation of Adevinta and eBay's advertising business is expected to result in annual synergies of $150 to $185 million within the next three years. Rolv Erik Ryssdal, CEO of Adevinta, also said the acquisition of eBay Classifieds Group makes Adevinta "the largest online classifieds company globally".
The sell-off represents eBay's latest move in reducing its operations over the past few years. In 2015, the company spun off PayPal. Last year, it also sold StubHub to viagogo. Adevinta's acquisition of its advertising business is pending regulatory approvals and other closing conditions, with an expected completion by the first quarter of 2021.