Adevinta, the global online classifieds giant, has entered into a $56 million AUD ($40 million U.S.) agreement to sell several marketplace businesses to Frontier Digital Ventures (FDV), a specialist in operating and investing in marketplaces in emerging markets. The deal includes Avito in Morocco, Tayara in Tunisia and Fincaraíz in Colombia.

Adevinta CEO Rolv Erik Ryssdal said that “these sales represent another important milestone in the optimization of our portfolio, although we see great growth potential for Avito, Tayara and Fincaraíz, our strategy is to place enhanced focus on large markets with leading positions.”

All three marketplaces set to be acquired by FDV are leaders in their respective markets:

  • is the dominant horizontal marketplace in Morocco. It receives nearly 5 million visits each month.
  • has established itself as the No. 1 horizontal marketplace in Tunisia. It also runs real estate vertical and recruitment vertical
  • is the No. 1 real estate marketplace in Colombia. It will likely end up as part of Frontier’s South American business that recently combined forces with OLX, a subsidiary of internet giant Naspers.

From FDV’s perspective, the deal is an excellent opportunity to expand its portfolio. FDV halted trading of its stock on Wednesday as it was looking for an additional capital raise of $100 million to finance the acquisitions and shore up the balance sheets.

“Fincaraíz, Avito and Tayara are all great businesses in highly strategic and attractive markets for FDV, these acquisitions will complement our existing position in Morocco and accelerate our market entry into Colombia and Tunisia. We are highly supportive of the local management teams at Fincaraíz, Avito and Tayara. We look forward to working with each business to accelerate their growth and help them reach their full potential,” said Shaun Di Gregorio, founder and CEO of FDV.

These acquisitions will add to FDV’s current portfolio of 12 investments across 18 markets. The company has stated that it will provide extensive assistance to Avito, Tayara and Fincaraíz to enhance their products and services.

For Adevinta, the deal presents a continuing divestment of non-core assets as it looks to focus mature Western European markets, which are set to be further strengthened by the planned acquisition of EBay Classifieds Group marketplaces, due to be finalized in 2021.

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