Gumtree UK and Motors.co.uk have been sold to a US-German consortium in a deal which will allow the sale of Gumtree鈥檚 parent business.
In February, the Competition and Markets Authority raised concerns over eBay鈥檚 proposed sale of eBay Classified Group, parent company of Gumtree, to Adevinta, owner of Austrian resale app Shpock.
A Phase 1 investigation found the 拢6.5 billion deal could lead to higher prices and less choice for consumers, with Facebook Marketplace potentially left as its only competitor.
Now Austria鈥檚 Adevinta, parent company of online classified sales platform Shpock, has sold Gumtree UK and Motors.co.uk to O3 Industries, a New York-based family investment fund, and Novum Capital, a private equity firm based out of Frankfurt.
In the summer it divested Shpock, another remedy required by the CMA, to Russmedia Equity Partners.
鈥淭here was a high level of interest throughout the sale process, reflecting the quality of the Gumtree UK business and management team,鈥� said Rolv Erik Ryssdal, Adevinta CEO.聽
鈥淲e are confident that both O3 and Novum Capital are well placed to continue growing Gumtree UK and Motors.co.uk as they focus on providing leading classifieds advertising services to the UK market.
鈥淭he acquisition of eCG was a significant milestone for Adevinta, and we remain focused on successfully integrating the two businesses.聽
鈥淭he combination provides us the scale, expertise and talent to build innovative, world-class products that create value for all of our stakeholders.鈥�
Daniel Ozen, president of O3 Industries, said: 鈥淲e are excited to have reached this agreement to acquire Gumtree UK and Motors.co.uk, an iconic general classifieds as well as automotive marketplace.聽
鈥淥3 Industries is a trusted partner for businesses that have both a demonstrated record of innovation and customer service and, at the same time, clear opportunities for continued growth.聽
鈥淭hat is precisely what we see in Gumtree UK and Motors.co.uk. We look forward to working with its talented and experienced team and welcoming its associates into the O3 family.鈥澛�
Felix Homann, Partner of Novum Capital, added: 鈥淕umtree UK鈥檚 value proposition is more vital than ever, enabling consumers to participate more in the circular economy by buying and selling second-hand.聽
鈥淟ikewise, Motors.co.uk supports car dealers in satisfying the growing demand from consumers for a great online car buying experience. We are excited to put our expertise and passion to work in order to seize the opportunities this presents.鈥�