Norwegian Adevinta takes over Ebay’s classified business unit for 9.2 billion dollars or around 85 billion Norwegian kroner. Adevinta stock has risen considerably at the stock exchange.
Adevinta, who last year was separated from Schibsted, was suspended from trading stocks on Monday due to a pending announcement. Also, the trading of Schibsted stocks was stopped for the same reason. This was revoked once the agreement was ready.
According to E24, The Adevinta share rose about 30 percent at the stock exchange Tuesday afternoon. Schibsted A-stock rose by over 18 percent.
In a stock exchange announcement Tuesday afternoon, the acquisition was confirmed. It consists of 2.5 billion dollars, about 23 billion kroner, as well as around 540 million shares in Adevinta. This amounts to 44 percent. Schibsted’s ownership in Adevinta is reduced as a result of the trading from 59 to 33 percent.
-” with the acquisition of Ebay’s Classified Business unit, it will be the largest classified ad company globally, with a unique portfolio of leading marketplaces.” says CEO Rolv Erik Ryssdal of Adevinta.
In 20 countries
Adevinta already has digital marketplaces in 15 different countries in Europe, Latin-America, and North Africa. Overall, the company has 36 products and marketplaces with 1.5 billion page views monthly. Ebay’s classified business unit offers ads in over 1,000 cities worldwide.
Ebay’s classified business unit offers ads in more than 1000 cities worldwide. The income from the classified business unit, in the first quarter, was 248 million dollars, according to E24.
Through the acquisition, Adevinta gained a solid market position in over 20 countries. The service will reach 1 billion people and have 3 billion monthly views, the stock exchange announcement states.
The total revenue based on numbers from 2019 was 1.8 billion dollars, while operating profit was at $600 million.
© NTB Scanpix / #Norway Today