Apax IX agrees to acquire Baltic Classifieds Group
The Apax IX Fund (“Apax IX”) has today announced that it has reached a definitive agreement to acquire Baltic Classifieds Group (“BCG”), a portfolio of leading online classified advertising platforms in Lithuania and Estonia.
BCG’s portfolio comprises online classifieds platforms for automotive, real estate, jobs, and general merchandise, and are some of the most visited websites in their respective countries. As a high-quality business, with market-leading positions in several verticals, the opportunity is to back an excellent management team to scale the business further, including through leveraging Apax’s considerable experience in the space.
AGA, whose shares are listed on the London Stock Exchange, provides investors with access to the investment expertise of Apax Partners through its investments in a diversified portfolio of private equity funds advised by Apax Partners as well as derived investments in debt and equity. In May 2016, AGA committed $350m to Apax IX.
Funds advised by Apax Partners to acquire Baltic Classifieds Group
9 May 2019 – Funds advised by Apax Partners (the “Apax Funds”) today announced a definitive agreement to acquire Baltic Classifieds Group (“BCG”), a portfolio of leading online classified advertising platforms in the Baltics. The stake will be acquired from Media Investments & Holding OÜ, a Baltic-based media business. The transaction is expected to close by July 2019, subject to regulatory approvals. Financial terms were not disclosed.
BCG operates Autoplius.lt, Aruodas.lt, Skelbiu.lt, CVBankas.lt, KV.ee, City24.ee, City24.lv, Osta.ee and Soov.ee, leading online classifieds platforms for automotive, real estate, jobs, and general merchandise. BCG’s portals are some of the most visited websites in their respective countries, generating more than 50m monthly visits in aggregate.
The Apax Funds have a long and successful track record investing in digital marketplace businesses. The investment in Baltic Classifieds Group will be the ninth in this space and the first in the Baltic region. Previous investments include Auto Trader in the UK, Idealista in Spain, SoYoung and SouFun in China and Trade Me in New Zealand.
Tom Hall, Partner at Apax Partners, said: “Over more than a decade, Justinas, the CEO, Simonas, the COO, and their long-standing team have built a collection of market-leading businesses with strong brands. The digital marketplaces they operate promote trust, fairness and efficiency. We are excited to introduce the BCG team to our wide network of classifieds businesses and executives around the world. We look forward to investing in BCG further, with the support of our Operational Excellence Practice, to enhance the great value these marketplaces provide for advertisers and consumers.
“We are also very pleased for the Apax Funds to invest in the Baltics for the first time. We are confident in the growth prospects of the region and have been very impressed with its business friendliness, pragmatism and entrepreneurial culture.”
Justinas Simkus, Chief Executive Officer of BCG, said: “We are proud to have developed a market-leading position. This is testament to our team and to the support we have had from our exiting shareholder. We look forward to benefitting from the considerable experience the Apax team has in digital marketplaces.”
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About Apax Global Alpha Limited
AGA is a Guernsey registered closed-ended collective investment scheme incorporated as a non-cellular company that listed on the London Stock Exchange on 15 June 2015. It is regulated by the Guernsey Financial Services Commission.
AGA’s objective is to provide shareholders with capital appreciation from its investment portfolio and regular dividends. The Company is targeting an annualised Total Return, across economic cycles, of 12-15% (net of fees and expenses) including a dividend yield of 5% of Net Asset Value.
The investment policy of the Company is to make Private Equity investments in Apax Funds, and Derived Investments which are investments in equities and debt derived from the insights gained via Apax Partners’ Private Equity activities. The Company’s portfolio is expected to be allocated in approximately equal proportions between Private Equity and Derived Investments, although the investment mix will fluctuate over time due to market conditions, investment opportunities, cash flow requirements, the dividend policy and other factors. Further information regarding the Company and its publications are available on the Company’s website at www.apaxglobalalpha.com.
About Apax Partners LLP
Apax Partners is a leading global private equity advisory firm. Over its more than 40-year history, Apax Partners has raised and advised funds with aggregate commitments of c.€40 billion. Funds advised by Apax Partners invest in companies across four global sectors of Tech & Telco, Services, Healthcare and Consumer. These funds provide long-term equity financing to build and strengthen world-class companies. For further information about Apax Partners, please visit www.apax.com.
Apax Partners is authorised and regulated by the Financial Conduct Authority in the UK.