Impresa Capital acquires online community website Gumtree South Africa

SOUTH AFRICAGumtree South Africa, an online classified ad and community website, has been purchased by Durban-based Impresa Capital from Norwegian firm Adevinta for an unknown sum.

Gumtree South Africa will now have South African owners for the first time in 18 years, after having been controlled by American international e-commerce business eBay and subsequently Adevinta.

The majority owner of the Durban-based Ignition Group of companies, formed in 2002 by brothers Sean and Donovan Bergsma, is the acquiring company Impresa Capital.

“As a proudly African-rooted business, this acquisition cements our strategy of investments in the technology and media sectors and provides our portfolio of businesses with a solid platform for growth,” said Sean Bergsma, cofounder and CEO of Ignition Group.

“We plan to enable Gumtree customers to experience new ways of buying and selling through partnerships with the Ignition ecosystem of services.”

The acquisition of Gumtree, in his opinion, is the best “next step” in moving the company in new and interesting areas and creating a variety of opportunities for Gumtree users through the platform.

“The accelerated growth of Gumtree on the African continent will see new jobs being created, and with the technology developed further using local South African talent, it means exciting times ahead for all stakeholders,” he said.

Gumtree SA, an online marketplace that allows millions of users and consumers to buy and sell used items every day, was established in 2004. It continues to be one of the most popular websites in the nation.

A community-based marketplace like Gumtree SA, according to general manager Claire Cobbledick, benefits strategically from having access to local knowledge and expertise.

“And so being acquired by a South African investor is an important and exciting next step for the Gumtree SA business. We look forward to unlocking synergies within the Ignition Group businesses and network,” said Cobbledick.

Final regulatory permissions are still pending on the transaction.

Liked this article? Subscribe to DealStreet Africa News, our regular email newsletter with the latest news, deals, and insights from Africa’s businesseconomy, and more. SUBSCRIBE HER

Leave a Comment

This site uses Akismet to reduce spam. Learn how your comment data is processed.