Blackstone and Permira Reevaluate $11.5bn Adevinta Deal

Private equity firms Blackstone and Permira are reportedly reconsidering their potential acquisition of Oslo-based online classifieds company Adevinta.

The potential deal, which would have been one of the year’s biggest buyouts, is being taken back to the investment committees of the firms for further discussion, Bloomberg reported Sunday (Oct. 22), citing unnamed sources.

Blackstone and Permira declined to comment to PYMNTS.

The market outlook has worsened since news of the bid first emerged in September, reducing the firms’ desire to take such a significant bet during a time of uncertainty, according to the report.

One of the main challenges faced by the firms is bridging the gap on price expectations with the special board committee of Adevinta independent directors that is reviewing the offer, the report said. The company’s stock has surged since the private equity interest, with gains of 58% this year, giving the company a market value of $11.5bn. The investor group has not yet decided on its next steps and could still proceed with its bid.

Adevinta confirmed in September that it had received a nonbinding takeover proposal from the consortium led by Permira and Blackstone. The company did so in a Sept. 21 statement in response to a Bloomberg report about the proposal, per the report.

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“The discussions are at an early stage and there can be no certainty as to whether a final offer will be made, nor as to the terms of any offer,” Adevinta said in the Sept. 21 statement.

The company’s largest shareholders, eBay and Norwegian media group Schibsted ASA, expressed their support for the private equity transaction and would retain part of their stakes if the deal goes ahead, according to the statement.

The potential buyout deal comes at a time of global stock market volatility due to escalating tensions between Israel and Hamas, per the Bloomberg report. The Euro Stoxx 600 Index has declined almost 4% in October, and there are concerns that central banks may continue to hike interest rates to combat persistent inflation in the coming months.

It was reported in August that rising interest rates, high inflation and lower consumer spending have led to a sharpened focus on belt-tightening among venture capital investors in the last year. In the FinTech sector, for example, this has put pressure on companies as they pivot to profitability.

Source: PYMNTS

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