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Adevinta — M&A Activity 2020
Mar 3, 2020
3520_iss_2020-03-03_5394b9b1-6332-4188-832a-b2b6d9ce5153.html
M&A Activity
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Adevinta ASA (ADE) - Adevinta announces that OLX Brazil is to acquire Grupo ZAP and strengthen its position in the real estate segment in the country
Adevinta ASA (ADE) - Adevinta announces that OLX Brazil is to acquire Grupo ZAP and strengthen its position in the real estate segment in the country
- The deal values Grupo ZAP at approximately R$ 2.9 billion
- The partnership promises an improved user experience and service offering
- The transaction is subject to approval by Brazil's Antitrust Agency (CADE)
Oslo, 03 March 2020: OLX Brazil, the 50/50 joint venture between Adevinta ASA
(OSE: ADE) and Prosus NV (AMS: PRX), and one of the fastest growing tech
companies in Brazil, has entered into an agreement to acquire 100% of the shares
of Grupo ZAP for a total cash amount of approximately R$ 2.9 billion. The
investment will be equally financed by OLX Brazil's two existing shareholders,
with Adevinta financing its share through existing bank facilities.
OLX Brazil and Grupo ZAP, currently among the most relevant players in the
online
real estate classifieds and advertising sector in Brazil, are highly
complementary platforms. The acquisition therefore will offer a great
opportunity for synergies and value creation. The merger will help boost the
real estate market, offering a better range of services with a broader database
of properties. With Grupo ZAP, OLX Brazil will be able to offer its users more
than 12 million listings from more than 40,000 real estate agencies and
thousands of private listers, as well as allowing its advertisers to reach a
larger audience. In 2018, Grupo ZAP had net revenues of R$ 217 million and
EBITDA of R$ -18 million, with an average of 28 million visits per month in
"OLX Brazil and Grupo ZAP are at the forefront of helping players along the Real
Estate value chain become more digital. The transaction will boost OLX Brazil's
capabilities to drive innovation and develop a superior customer experience,
ultimately making buying, selling and renting real estate in Brazil much safer,
simpler and more efficient for all players involved," says Andries Oudshoorn,
CEO of OLX Brazil.
Rolv Erik Ryssdal, CEO of Adevinta, comments: "Expanding in territories where we
see significant growth opportunities is a key pillar of Adevinta's strategy. The
large Brazilian real estate market has low penetration of online listings and is
poised for a migration to digital. I am delighted to see OLX Brazil
strengthening its position in the real estate vertical in order to capture part
of the upcoming growth potential."
Martin Scheepbouwer, CEO of OLX Group, the classifieds business of Prosus,
says: "We are excited to take our partnership in Brazil into a new stage of
growth. The acquisition of Grupo ZAP promises to advance the real estate sector
in Brazil, and develop technology that better serves all our customers. We
already have a strong presence in the online real estate market in Europe, South
Africa and other Latin American countries, and we look forward to exploring
further growth opportunities in Brazil."
The transaction coincides with a period of high growth for online advertising.
According to the IAB (Interactive Advertising Bureau) Brazil, in 2018 the
industry represented an estimated investment of R$ 16.1 billion, with online
classifieds forming just 10% of that. As the real estate industry is moving
quickly from offline to online, boosted by low interest rates - online
advertising is set to make significant gains. These gains look to be
particularly substantial for online classifieds, as real estate classifieds
platforms grow in popularity and traffic. In addition, with the real estate
industry still to reach the maturity levels seen in other markets, there is
plenty of opportunity for high-value growth overall.
The transaction is subject to approval by Brazil's Antitrust Agency (CADE) and
other customary closing conditions. Closing is expected in the second half of
-End-
About Adevinta ASA
Adevinta is a global online classifieds company with generalist, real estate,
cars, jobs and other internet marketplaces in 16 countries, connecting buyers
seeking goods or services with a large base of sellers. Its portfolio spans 36
digital products and websites, attracting 1.5 billion average monthly visits.
Leading brands include top-ranked leboncoin in France, InfoJobs and Milanuncios
in Spain, and 50% of fast-growing OLX in Brazil. Adevinta was spun off from
Schibsted ASA and publicly listed as an independent company in Oslo, Norway in
2019. Adevinta is majority owned by Schibsted ASA.
About OLX Brazil
In Brazil since 2010, OLX Brazil's shareholders are two of the main technology
investors in the world: Adevinta ASA (50%) - listed in Norway and majority
owned by Schibsted ASA - and Prosus N.V. (50%) - listed in the Netherlands and
majority owned by Naspers Ltd. OLX Brazil's mission is to empower people to
achieve their dreams reinventing the way they buy and sell online. The company
does this through technology designed locally, helping its users to buy and sell
almost anything in a safe, transparent, smart and convenient way. By encouraging
the trade of used goods, OLX Brazil directly contributes with the reduction of
waste, CO2 emissions and the usage of natural resources. OLX Brazil plays a
pivotal role in building a better world through a socially & environmentally
responsible business model. OLX Brazil had approximately R$ 350 million in net
revenues in 2019 and is continuously increasing profitability.
About Grupo ZAP
Grupo ZAP is the result of the merger of ZAPImóveis and Viva Real in 2017.
ZAPImóveis was created in 2000 and is indirectly owned by some of Grupo Globo's
shareholders since 2013, while Viva Real, on its turn, was launched in 2009.
Grupo ZAP has the mission to transform the way the real estate market operates
through technology. With 26 offices across the country, it has a relevant
database in the market, developing products, intelligence, services and
information to generate gains and rightful decisions to parties involved.
About OLX Group and Prosus
OLX Group is among the world's fastest-growing marketplaces networks, serving
more than 300 million people every month. Building leading destinations for
buying, selling, and exchanging products and services, it operates more than 20
consumer brands including Avito, letgo, and OLX. OLX Group's technology is
designed to enable safe and convenient transactions, encouraging reuse to help
give items second, third, or even fourth lives. It's estimated to facilitate
approximately 17 million trades every month, ranging from cars and furniture to
electronics and clothing. The Group is powered by a team of 6,000 people working
from 35+ offices around the world. For more information, please
visit www.olxgroup.com (http://www.olxgroup.com)
OLX Group is the online classifieds business of Prosus, a global consumer
internet group and one of the largest technology investors in the world. Prosus
has a primary listing on Euronext Amsterdam (AEX:PRX) and a secondary listing on
the JSE Limited (XJSE:PRX), and is majority owned by Naspers. For more
information on Prosus and its companies and investments, please visit
www.prosus.com (http://www.prosus.com)
Adevinta Investor Relations
Marie de Scorbiac
Head of Investor Relations
+33 6 14 65 77 40
[email protected] (mailto:[email protected])
Jo Christian Steigedal
Investor Relations
+47 415 08 733
[email protected] (mailto:[email protected])
Adevinta Media Relations
Mélodie Laroche
Corporate Communications
+33 6 84 30 52 76
Prosus Investor Relations
Eoin Ryan
Head of Investor Relations
OLX Group / Prosus Media Relations
Ana Garcia
Head of Communications OLX Group