Prosus’ Acquisition of Avito for $6B in Russia: Insights from Prinsloo, Bloomberg
Avito, Russia’s largest independent e-commerce company and operator of the country’s largest consumer marketplace, announced Monday that its acquisition by Prosus, a large-scale consumer goods retailer, is complete. The deal marks the biggest acquisition of a Russian business by an overseas acquirer since 2016 and will allow Avito to expand its presence in Eastern Europe and Asia Pacific. The two companies have combined sales of more than $6 billion and operate online marketplaces in Russia and neighboring countries.”The transaction has been completed with no party defaulting on any payment terms,” said a statement from Prosus. “No further updates will be provided until close of business on July 23.”
Avito, Russia’s largest independent e-commerce company, announced Monday that its acquisition by Prosus, a large-scale consumer goods retailer, is complete.
Avito is a Russian e-commerce company that was founded in 1999 and has since grown to become the leading independent online retailer in Russia. The company has more than 1 million users and has been profitable for five years running.
Avito will continue to operate as an independent brand under Prosus’ ownership, but it will also gain access to Prosus’ proprietary retail infrastructure, which includes over 100 stores across Russia aimed at young adults between 20 and 40 years old (Avito’s target demographic).
The deal, which was reached in May and closed in June, marks the biggest acquisition of a Russian business by an overseas acquirer since 2016.
The deal, which was reached in May and closed in June, marks the biggest acquisition of a Russian business by an overseas acquirer since 2016.
The purchase price of $6 billion for Proconsulting Group PLC (POSL) comes on top of the more than $1.7 billion that Avito paid for its parent company, which owns Proconsulting as well as other businesses across Russia and Eastern Europe.
Avito has since become one of Russia’s largest online classifieds sites with over 50 million users across its three brands: Avito (Russia), Qiwi (Russia) and Liveinternet (Europe).
The two companies have combined sales of more than $6 billion and operate online marketplaces in Russia and neighboring countries.
Prosus and Avito have combined sales of more than $6 billion and operate online marketplaces in Russia and neighboring countries. The two companies have combined user bases of 59 million users across Russia and Eastern Europe.
Avito was founded in 2008 as an online classifieds site, but it has since expanded its services to include various other categories, including real estate listings (Vybory), local services (Vybory) and auto dealerships (AutoZone).
Prosus was launched in 2011 as an online shopping platform for consumers looking to buy goods online at competitive prices while providing them with a convenient experience when making purchases through the website’s mobile application or desktop application.
Prosus is owned by 3i Group, a British private equity firm specializing in software companies.
Prosus is owned by 3i Group, a British private equity firm specializing in software companies.3i Group specializes in software companies and is one of the largest players in the European tech sector. It’s also known for its investments in Avito and MailRu, which are both online retailers that sell consumer goods like clothes or shoes.
Avito Ltd., on the other hand, is an e-commerce platform that helps consumers buy products online at lower prices than traditional retailers offer through its website or app (which has been downloaded more than 40 million times). Avito was founded in 2010 by Dmitry Bulygin (CEO), Andrey Kuzmenkovskiy (COO), Andrey Grivnovskiy (CTO) and Aleksandr Razumovskiy (CFO).
“The transaction has been completed with no party defaulting on any payment terms,” said a statement from Prosus. “No further updates will be provided until the close of business on July 23.”
Prosus, a Russian company that specializes in media and entertainment, said it has acquired Avito for $6 billion.
The deal was announced on July 20 and completed on July 22, according to a statement from Prosus. No party defaulted on any payment terms, it said: “No further updates will be provided until the close of business on July 23.”
The merger is expected to improve both companies’ ability to compete against Amazon and Alibaba in Russia’s growing e-commerce market as well as provide more services for consumers at Avito’s user base of 59 million users across Russia and Eastern Europe.
Prosus, a large-scale consumer goods retailer based in Russia, has acquired Avito for $6B in an all-cash deal. The acquisition is expected to improve both companies’ ability to compete against Amazon and Alibaba in Russia’s growing e-commerce market as well as provide more services for consumers at Avito’s user base of 59 million users across Russia and Eastern Europe.
Avito was founded by Alexander Goncharov in 2011 with its main focus on localizing products from foreign brands like Nike or Adidas into Russian language versions so that they could be purchased online through the company’s website or mobile app (which has over 27 million downloads). The company also provides food delivery services through its app and has partnered with some local restaurants such as McDonald’s Russia LLC and Unibet Poker Lounge Inc
Conclusion
The merger is expected to improve both companies’ ability to compete against Amazon and Alibaba in Russia’s growing e-commerce market as well as provide more services for consumers at Avito’s user base of 59 million users across Russia and Eastern Europe.
