Adevinta ASA has signed an agreement for the sale of Gumtree South Africa (Gumtree SA), to Impresa Capital, majority shareholder of Ignition Group, one of Africa’s largest investors in technology, media, telecommunications and financial services.
The transaction is subject to regulatory approval.
Gumtree SA’s operations were classified as discontinued operations and the impact on the Group’s financials is considered immaterial.
“We are delighted to bring Gumtree SA back to its home roots in South Africa, and to expand on the Gumtree platform with new products and services that will benefit Gumtree customers, both consumers and businesses alike,” Sean Bergsma, Ignition Group CEO said.
“The accelerated growth of Gumtree on the African continent will see new jobs being created and the technology developed further using local South African talent. Exciting times ahead for all stakeholders.”
Gumtree SA was launched in 2004, and is one of South Africa’s 10 largest locally published sites.
The online classifieds platform helps millions of users and customers buy and sell second-hand goods daily and holds solid leadership positions in the competitive South African market.
“As part of Adevinta’s strategic review process, we continue to focus our investment capacity on five European Core Markets (France, Germany, Italy, Netherlands and Spain), and we have made every effort to find the ideal buyer, not only to continue to invest in Gumtree SA, but to ensure the continuity of the operations for the employees involved,” Rolv Erik Ryssdal, CEO Adevinta, said.
“We are particularly pleased that Impresa Capital, a successful entrepreneurial based business with various technology driven investments, will be able to continue developing and growing the business, while also identifying interesting long-term synergy potential. Adevinta will continue to support Gumtree SA and its employees throughout this transition, to ensure continuity for the business and its users. We wish them every success in the future.”
1 Comment
This is great news! Our biggest marketplace must be owned by people that undertand the South African landscape. I look forward to see what the Ignition Group will do with Gumtree