Northzone exits Russian online classifieds company Avito for $155M
Northzone has announced the signing of an agreement the Northzone’s shares in Russian online classifieds company Avito to South African media group, Naspers for a cash consideration of $155 million. This transaction values Avito at $2.7 billion, making it one of the biggest ever technology M&A deal for the European venture capital industry. The transaction is contingent on approval from anti-trust authorities and is expected to close during Q4 2015.
Northzone was the first VC to invest in Avito in 2010, at the time a small but promising pre-revenue, online classifieds business active in the fast-growing Russian internet market. Led by exceptional founders Jonas Nordlander and Filip Engelbert, the company has since grown to generate $76.5 million in 2014 at profit margins above 50%.
“We are very proud to have had the opportunity to support such a stellar team in what has turned out to be one of the best investments in Northzone’s 20 year history. From early days, Jonas and Filip have consistently impressed us with their ability to build a strong product that has a genuinely positive impact on many lives and businesses in Russia. For the last two years, Naspers has been a very strong partner for growth in Avito, and we believe that this transaction will further strengthen Avito’s ability to develop in the Russian market and prove to be mutually beneficial for both companies.” comments Pär-Jörgen Pärson, General Partner of Northzone who has served on the Board of Directors of Avito Holding AB since 2010.
Northzone is a technology investment fund. The partnership has to date raised seven funds and invested in some 100 technology-enabled companies. The current portfolio includes companies such as Spotify, Trustpilot, WideSpace and SpaceApe. The company has offices in London, Stockholm, Oslo, Copenhagen and New York.
For further information please contact:
Sofia Lundvall, Head of Marketing and Communications, Northzone
+44 770 268 4634
Source: Northzone Press Release