eBay Agrees To Sell Part Of Adevinta Stake To Permira

eBay Inc. (Nasdaq: EBAY), a global commerce leader that connects millions of buyers and sellers around the world, today announced that it has reached an agreement with Permira to sell approximately 125 million shares of its stake in Adevinta for an estimated total consideration of $2.25 billion.(1) The price represents an approximate 7% discount to the 10-day volume weighted average price (VWAP) of Adevinta shares as of July 12, and a 5% discount to the 30-day VWAP as of July 12.  

The transaction is expected to close in Q4 2021, once regulatory approvals are secured, and will reduce eBay’s ownership stake in Adevinta from 44% to 34%. In addition, eBay has granted Permira a 30-day option to purchase approximately 10 million additional shares at the same price representing an additional $180 million in consideration. (2) If Permira exercises the option, eBay’s ownership in Adevinta will reduce to 33%. 

Under its recent agreement with Austrian regulators, eBay committed to reduce its ownership in Adevinta to 33% to secure approval for the eBay Classifieds Group and Adevinta transaction. The transaction announced today with Permira provides a clear path to satisfying this commitment, while delivering value to eBay shareholders and introducing an experienced, world-class growth investor to Adevinta’s shareholder base. 

About eBay

eBay Inc. (Nasdaq: EBAY) is a global commerce leader that connects millions of buyers and sellers in 190 markets around the world. We exist to enable economic opportunity for individuals, entrepreneurs, businesses and organizations of all sizes. Founded in 1995 in San Jose, California, eBay is one of the world's largest and most vibrant marketplaces for discovering great value and unique selection. In 2020, eBay enabled $100 billion of gross merchandise volume. For more information about the company and its global portfolio of online brands, visit www.ebayinc.com.

About Permira

Permira is a leading global investment firm focused on growth at scale. Founded in 1985, the firm advises funds with total committed capital of approximately US$50bn (€44bn) and makes long-term majority and minority investments. The Permira funds have made over 250 private equity investments in four key sectors: Technology, Consumer, Services and Healthcare. Permira employs over 350 people in 15 offices across Europe, North America, and Asia.

The Permira funds have an extensive track record in investing at the intersection of consumer/prosumer and technology, having backed Allegro, Mirakl, TeamViewer, Klarna, LegalZoom, Flixbus, Ancestry, Catawiki, Boats Group, The Knot Worldwide, BestSecret, Zwift and Magento. For more information, visit www.permira.com.   

Source : eBay

For all the very latest news and intelligence on the UK's largest home improvement and garden retailers, sign up for the Insight DIY weekly newsletter.