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Investing.com -- OLX Group, owned by Prosus (AS:PRX), on Friday said it will buy French autos marketplace La Centrale from Providence Equity Partners for €1.1 billion in cash.
The companies said the deal is expected to close by the end of the year, pending a customary employee consultation process.
The transaction gives OLX, which runs online marketplaces in Central and Eastern Europe, a direct entry into France’s autos market.
La Centrale, founded nearly 60 years ago, is recognized as one of the country’s most established digital platforms for used cars, with about 4.5 million monthly unique visitors and 350,000 listings.
Amsterdam-based OLX operates classifieds for cars, housing, jobs and goods in eight countries, reaching 29 million users monthly.
La Centrale will expand that reach to Western Europe, adding a brand with deep ties among French dealers and consumers.
OLX chief executive Christian Gisy said La Centrale’s position in the French market and its leadership team made it a strong addition to the group’s classifieds portfolio.
Fabricio Bloisi, chief executive of Prosus, said the purchase expands the company’s ecommerce ecosystem in Europe and noted that Prosus intends to increase investment in artificial intelligence technology in France.
Providence invested in La Centrale in 2021 and backed its transition from a traditional listings site to a technology-driven business.
Senior managing director Karim Tabet and managing director Robert Sudo said that transformation relied on investments in technology, marketing and staff. They said classifieds revenue has since grown at a 12% compound annual rate.
La Centrale chief executive Philippe Chainieux said combining OLX and Prosus would help the platform accelerate its development and continue serving French dealers and customers.
Advisers to Prosus and OLX on the deal were BofA Securities and A&O Shearman. Providence was advised by Goldman Sachs and Kirkland & Ellis.