The US firm EBay Inc agreed to sell its classifieds business to Norway’s Adevinta in a deal worth 9.2 billion dollars (just over 8 billion euros), creating the largest group of classifieds in the world, both companies said. on Tuesday.
Under the deal, eBay will receive $2.5 billion in cash and 540 million Adevinta shares, making it the largest shareholder with a 44% stake and 33.3% voting rights, they said.
“Adevinta becomes the world’s largest online classifieds company, with a unique portfolio of leading market brands,” said Adevinta CEO Rolv Erik Ryssdal.
The combined company will have a presence in 20 countries, with Europe being its largest market. It will have estimated revenues of $1.8 billion and earnings before interest, taxes, depreciation and amortization (EBITDA) of close to $600 million.
A source close to the deal said the Norwegian firm improved the terms of its proposal over the weekend by offering eBay a larger stake. Initially, the US company’s board was divided, with some members supporting a $9 billion cash offer from online retailer Prosus.
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