For the first time in 18 years, the ownership of Gumtree South Africa, South Africa's biggest online classified advertisement and community website, will be in the hands of South African owners.
The company, previously owned by American multinational e-commerce company eBay, and then Adevinta, has been bought by Impresa Capital, majority shareholders of the Ignition Group of companies based in Durban. Ignition was founded in 2002 by brothers Sean and Donovan Bergsma.
“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. We plan to enable Gumtree customers to experience new ways of buying and selling through partnerships with the Ignition ecosystem of services,” says Sean Bergsma, CEO of Ignition Group.
Bergsma said he viewed the Gumtree acquisition as the ideal ‘next step’ to taking the business in new and exciting directions for the future and opening up a wealth 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,” Bergsma said.
Claire Cobbledick, general manager of Gumtree SA, said that as a community-based marketplace, local expertise and knowledge presented a strategic advantage.
“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,” she said.
Gumtree SA was launched in 2004 and remains one of the country’s top 10 favourite sites. The online classifieds platform helps millions of users and customers buy and sell second-hand goods daily.
The deal is still subject to final regulatory approvals.
