- FDV has entered into an agreement to acquire 100% of the issued capital of Yapo.cl (“Yapo”) from Adevinta ASA (“Adevinta”) for approximately US$19.5m (~A$24.7m) in cash consideration
- Yapo is the leading general classifieds portal in Chile with the #1 position across the high value auto and real estate verticals
- Acquisition strengthens FDV’s position in Latin America through entry into a new market, complementing the existing market positions held by Fincaraíz, InfoCasas and Encuentra24
- Yapo is expected to make a material contribution to revenue on an FDV ownership basis, with attractive monetisation opportunities identified to accelerate revenue growth
Frontier Digital Ventures Limited (FDV), a leading operator of online classifieds businesses in emerging countries or regions, today announced that it has entered into an agreement to acquire 100% of Yapo, the leading general classifieds portal in Chile from Adevinta for a total cash consideration of approximately US$19.5m (~A$24.7).
Yapo is the leading general classifieds portal in Chile with the #1 position across the high-value auto and real estate verticals. This acquisition extends FDV’s footprint into an attractive adjacent market in Latin America, complementing existing interests in Fincaraíz, InfoCasas and Encuentra24. FDV will benefit from increased scale and diversification in the region, enhancing the risk-return profile of the portfolio. The acquisition also enhances FDV’s network of leading classifieds platforms in Latin America, creating potential opportunities for collaboration and/or consolidation.
FDV’s Founder and CEO, Shaun Di Gregorio commented: “With this acquisition, FDV’s network of operating companies now spans the length of South America, significantly enhancing our position in a highly attractive region. We expect Yapo to make a material contribution to the continued revenue growth we have demonstrated since our IPO in 2016.
Control of Yapo will allow FDV to immediately begin implementing best in class strategies to enhance monetisation across the platform. This transaction follows the successful acquisition of Fincaraíz, Avito and Tayara in late 2020 from Adevinta and provides further evidence of FDV’s growing reputation as a global online classifieds player.”
Rolv Erik Ryssdal, CEO Adevinta, said: “I am very proud of the work achieved by our team in Chile, building Yapo into a solid leader with strong traffic and growth. Yapo requires additional investment, support and resources to continue this momentum, and I believe that FDV has the expertise and focus to help Yapo reach its full potential. The new owners will be a good fit for Yapo and give the team the support they need to move forward faster.”
The acquisition is expected to make a material contribution to FDV’s growth trajectory, underpinned by the strong operational performance of the business. Yapo’s management team have built a strong brand position in Chile with 92% of traffic being organically driven and a highly engaged audience, the majority of whom access the platform via mobile devices. In December 2020, the platform saw 26 million website sessions, which highlights the significant growth potential underpinned by attractive monetisation opportunities. FDV’s initial focus will be to leverage the existing classifieds business to explore opportunities to facilitate transactions across the platform.
Under the agreement with Adevinta, FDV will acquire 100% of the issued capital of Yapo for cash consideration of approximately US$19.5m (~A$24.7) using existing cash reserves. The acquisition follows the recently increased investment in Moteur in January 2021 and the acquisition of 100% of the issued capital of Fincaraíz, Avito and Tayara in late 2020.
FDV continues to actively assess value accretive opportunities that strengthen its position as a leading owner or operator of online classifieds businesses in emerging markets.
Further information in relation to the acquisition is provided in the FY20 full year results presentation to be lodged separately with the ASX today.
