Online classified advertisement and community website, Gumtree South Africa, is set to get new 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.
“As a proudly African-rooted business, 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,” said Sean Bergsma, co-founder and CEO of Ignition Group.
Bergsma said the Gumtree acquisition is the ideal ‘next step’ to taking the business in new directions. “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,” he said.
Claire Cobbledick, GM of Gumtree SA, said that as a community-based marketplace, local expertise and knowledge presents 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.”
Gumtree SA launched in 2004 and aids users and customers in the buying and selling of second-hand goods daily and holds solid leadership positions in the competitive South African market.
The deal is still subject to final regulatory approvals.