This includes separate online marketplaces such as Gumtree, which is popular in SA, the UK and AustraliaThe eBay app on a tablet screen. Picture: AFP/MARTIN BUREAU
The tie-up means eBay will get $2.5bn of cash and 540-million shares in the Norwegian firm, the companies said in a statement on Tuesday. Shares in Adevinta rose as much as 39%. While Adevinta CEO Rolv Erik Ryssdal is focused on closing the deal, he said he has his eye on the next acquisition. The company used new debt and its existing cash to fund the deal, taking out a $3bn bridge loan to refinance its existing borrowings and cover transaction and financing fees. It said it expects to “de-lever quickly” as earnings expand.
eBay has been under pressure from activist investors Starboard Value and Elliott Management to sell assets and focus on its main online marketplace, eBay.com. In 2019, the company agreed to appoint two new directors from Starboard and Elliott, and the shareholders stepped up pressure to divest noncore assets. The same year Devin Wenig stepped down as CEO after balking at the sales.
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