Norway's Adevinta Buys Ebay's Classified-Ads Business for $9.2 Billion in Cash and Stock

Norway's Adevinta ASA (ADEVF) Tuesday agreed to buy eBay Inc.'s (EBAY) global classified-ads business for $9.2 billion in cash and stock.

Under the terms of the deal, Adevinta (ADEVF) will pay eBay (EBAY) $2.5 billion in cash and 540 million shares of Adevinta (ADEVF), representing a 44% stake in the company on a pro forma basis.

"With the acquisition of eBay Classifieds Group, Adevinta (ADEVF) becomes the largest online classifieds company globally, with a unique portfolio of leading marketplace brands," Adevinta (ADEVF) Chief Executive Rolv Erik Ryssdal said.

"This transaction demonstrates we are swiftly executing on the strategy we outlined at our initial public offering last year, and it brings further diversification through exposure to new markets with attractive margins and strong growth potential."

San Jose, Calif.-based eBay (EBAY), once a highflying internet conglomerate with brands like PayPal and StubHub, has been unwinding that structure under pressure from activist investors who argued it shrouded eBay's (EBAY) value. The classifieds unit is one of the last remaining businesses outside the core after the company struck a deal to sell its StubHub ticketing division last year.

Ebay's (EBAY) classifieds unit primarily operates internationally across Canada, parts of Europe, Africa, Australia and Mexico. Its platforms allow users to post goods and services in their local communities, similar to Craigslist in the U.S. The division produced $1.1 billion in revenue last year compared with the $7.6 billion its marketplace business generated.

Adevinta (ADEVF) operates digital marketplaces in 15 countries in Europe, Latin America and North Africa. By acquiring the eBay (EBAY) business, the combined business will benefit from a portfolio of assets centered around Germany, France and Spain, it said.

The deal is expected to create synergies of $150 million-$185 million of run-rate earnings before interest, tax, depreciation and amortization by year three after completion of the transaction.

As part of the deal, Schibsted ASA (SBSNF) has agreed with Adevinta (ADEVF) to buy eBay's (EBAY) Danish classifieds business for $330 million, reducing the cash consideration due from Adevinta (ADEVF) to $2.17 billion.

Write to Dominic Chopping at

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  07-21-20 0405ET
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