OLX Group’s €1.1bn purchase of La Centrale, the online French vehicles classifieds platform, underscores the commitment of parent company Prosus to build a tech powerhouse in Europe, notwithstanding scepticism about the region’s prospects.
The acquisition from Providence Equity Partners will accelerate OLX’s European strategy to grow highly profitable marketplaces using best-in-class AI and tools trusted by dealers and consumers, Prosus said.
The all-cash deal is expected to be completed by the end of the year, subject to a customary employee consultation process.
Unlike his predecessors, Naspers/Prosus CEO Fabricio Bloisi has ambitions of building an e-commerce powerhouse in Europe, a region that many peers have relegated to the sidelines for a perceived lack of opportunity and innovation.
The group has built a substantial presence in major emerging markets such as China and Brazil, and plans to do the same in Europe even as many investors discount the region as being too mature, and that its onerous regulatory regime stifles innovation.
In February, Prosus group agreed to buy Just Eat Takeaway.com for €4.1bn, its largest investment yet.
OLX, operates online marketplaces for vehicles, real estate, jobs and goods with 29-million monthly users in eight countries, primarily in Central and Eastern Europe.
The acquisition of La Centrale, announced on Friday, marks OLX’s entry into Western Europe and France’s structurally attractive autos market, Prosus said.
La Centrale is recognised as France’s most specialised autos platform, with strength in higher-value vehicles and deep trust among sellers and consumers, it said.
The transaction combines two proven leaders in classifieds, strengthening OLX’s European vehicles portfolio in a compelling and attractive market while bringing in La Central’s leadership team to help build Prosus’ ambitions of being the leading European e-commerce ecosystem, it added.
“La Centrale is a natural fit within our classifieds portfolio,” said Christian Gisy, CEO of OLX. “Our strategy is to unleash the growth potential of vertical marketplaces, building strong regional leaders by scaling businesses using our proprietary AI technology.”
La Centrale gives OLX an immediate leading position in one of Europe’s largest used-car markets. By combining OLX’s scale and technology with La Centrale’s local expertise and strong brand, the business is well positioned to attract more dealers and expand their partnerships, enhance the customer experience, and accelerate revenue growth, Prosus said.
La Centrale has strong brand recognition and scale, with about 4.5-million monthly unique visitors and about 350,000 listings, which complements OLX’s leading motors portfolio in Central and Eastern Europe, comprising four brands spanning five markets, Prosus said.
Bloisi believes La Centrale strengthens the group’s lifestyle e-commerce ecosystem in Europe and highlights the commitment to invest in the people and platforms shaping the future of e-commerce in the region.
“La Centrale will expand our footprint into one of Europe’s most dynamic technology markets and unlock new opportunities to innovate, scale, and deliver even greater value to consumers and partners through AI. I expect to invest more in AI technology in France,” he said.
“La Centrale has long been a trusted destination for dealers and consumers in France,” said Philippe Chainieux, CEO of La Centrale. “We believe that joining forces with OLX and Prosus will allow us to expand that mission, accelerate innovation and deliver even greater value to our customers.”
Would you like to comment on this article?
Sign up (it's quick and free) or sign in now.
Please read our Comment Policy before commenting.