Prosus' OLX to buy French classified platform La Centrale in $1.3 billion deal
FILE PHOTO: Prosus' logo is pictured on a smartphone in this illustration taken, December 4, 2021. REUTERS/Dado Ruvic/Illustration/File Photo
Online marketplace OLX will buy French motors classified platform La Centrale for 1.1 billion euros ($1.3 billion), OLX owner Prosus said on Friday, as it aims to establish itself as Europe's leading e-commerce provider.
Prosus, majority-owned by South Africa's Naspers, received EU approval in August for its $4.8-billion bid for Just Eat Takeaway, which analysts expect will establish the world's fourth-largest food delivery company.
"We expect to close that in the coming days," Fahd Beg, Prosus' head of investments, told reporters on Friday.
Prosus said that buying La Centrale would help it enter the European autos market and strengthen its e-commerce presence on the continent, complementing the Just Eat merger.
It expects the acquisition of La Centrale from U.S. private equity company Providence to close by year-end.
E-COMMERCE CONSOLIDATION
OLX, among the world's largest classifieds companies, reported a 18 per cent increase in full-year revenues to $777 million in June. It aims for revenue growth of at least 20 per cent and core earnings margin of at least 50 per cent over the next two to three years, its CEO Christian Gisy told reporters.
"La Centrale is very much fitting into this overall strategy," he said, estimating the online platform to have sold around 1.6 million cars last year.
That accounts for around a third of all used cars sold in France, a Providence spokesperson told Reuters.
The deal will create more opportunities for technological development, Prosus CEO Fabricio Bloisi said in a statement.
"I expect to invest more in AI technology in France," he added.
The acquisition will also improve the cash profile of Prosus' e-commerce portfolio, according to brokerage J.P. Morgan.
($1 = 0.8563 euros)
