Adevinta, an international online classifieds company, acquired eBay's Classifieds business for $9.2 billion, according to a Tuesday press release. As part of the deal, eBay will receive $2.5 billion in cash and 540 million Adevinta shares, making eBay Adevinta's largest shareholder.
Adevinta's portfolio spans 35 digital products and websites, and eBay's Classifieds includes 12 brands in 13 countries. The partnership between the two will expand the combined reach to 20 countries around the world and is expected to create annual operational cost savings of between $150 million and $185 million over the next three years, according to a press release.
The two firms plan to harness their collective expertise to continue revamping their assets, speeding up monetization and providing value to shoppers and advertisers, per the company statement.
The agreement is expected to close by 2021, subject to regulatory scrutiny and customary closing conditions. Adevinta CEO Rolv Erik Ryssdal said in a company statement the company was drawn to eBay Classifieds Group's reach across markets through its multiple brands, including Motors.co.uk, Autotrader (Australia) and Carsguide (Australia), among others.
"With the acquisition of eBay Classifieds Group, Adevinta becomes the largest online classifieds company globally, with a unique portfolio of leading marketplace brands," Ryssdal said in a statement. "We believe the combination of the two companies, with their complementary businesses, creates one of the most exciting and compelling equity stories in the online classifieds sector."
The deal marks another change in eBay's business operations. Last November, the e-commerce veteran agreed to sell StubHub to Viagogo for $4 billion, and its former CEO Devin Wenig left the company last September.
Beyond its deals with other companies and leadership change, eBay has also stepped up to help merchants adapt during the COVID-19 pandemic. In April, the e-commerce platform announced a $100 million pledge along with digital and mentorship resources aimed at assisting North American businesses in migrating online.