Ebay to sell online classifieds business to Adevinta for $9.2bn

Ebay has agreed to sell its online classifieds business to Norway’s Adevinta for $9.2bn.

As part of the deal, eBay will receive $2.5bn in cash and around 540 million Adevinta shares, which gives the company an equity stake of approximately 44% and 33% of the voting rights.

Ebay chief executive officer Jamie Iannone said: "We are pleased we reached an agreement with Adevinta that brings together two great companies

"eBay believes strongly in the power of community and connections between people, which has been essential to our classifieds businesses globally. This sale creates short-term and long-term value for shareholders and customers, while allowing us to participate in the future potential of the classifieds business."

Adevinta, a global online classifieds specialist, currently operates in 15 countries, with a portfolio that spans 35 digital products and websites. eBay's classifieds platforms include a collection of 12 brands in 13 countries around the world.

"Together these complementary businesses will have solid market positions in 20 countries globally, and eBay will become the largest Adevinta shareholder," the company said.

The deal, due to close by the first quarter of next year, is expected to create annual synergies of $150m to $185m within the next three years.

Adevinta is majority owned by Schibsted, which has agreed to vote in favour of the transaction.