Gumtree: A Double Carve-out Success Story with Novum Capital
Deal News | Feb 24, 2025 | Novum Capital Beratungsgesells
This article details the strategic double carve-out of the British online marketplaces, Gumtree and Motors.co.uk, led by Novum Capital following their spin-off from eBay and Adevinta. The transaction marks a significant reorganisation within the online marketplace industry, drawing on the expertise of the Frankfurt-based private equity firm, Novum Capital. Under the leadership of Novum Capital, the carve-out was aimed at positioning these marketplaces to operate independently and enhance their competitiveness. The article, published on the Unternehmeredition website and in its print magazine, highlights the culmination of this strategic transformation with the subsequent successful sale of Gumtree to Chinese online marketplace giant, 58.com, in September 2024. The commentary from Novum Capital partner Felix Homann provides insider perspectives on the challenges and strategic decisions during the process.
Sectors
- Private Equity
- Online Marketplaces
- Mergers and Acquisitions
Geography
- United Kingdom – Gumtree and Motors.co.uk are British marketplaces, and their transformation is central to the narrative.
- Germany – Novum Capital, the private equity firm orchestrating the carve-out, is based in Frankfurt, Germany.
- China – 58.com, a Chinese online marketplace operator, acquired Gumtree, marking a key event discussed in the article.
Industry
- Private Equity – The article discusses the role of private equity firm Novum Capital in the carve-out and transformation of online marketplaces Gumtree and Motors.co.uk.
- Online Marketplaces – The focus of the article is on the strategic realignment of Gumtree and Motors.co.uk, both of which operate as online marketplaces.
- Mergers and Acquisitions – The article highlights the spin-off and subsequent sale of Gumtree, indicative of strategic M&A activity.
Financials
- End of September 2024 – The date when the sale of Gumtree to 58.com was completed.
Participants
| Name | Role | Type | Description |
|---|---|---|---|
| Gumtree | Target Company | Company | A British online marketplace involved in the double carve-out and subsequent sale. |
| Motors.co.uk | Target Company | Company | A British online automotive marketplace involved in the carve-out process. |
| Novum Capital Beratungsgesells | Bidding Company | Company | The Frankfurt-based private equity firm leading the carve-out and transformation. |
| eBay | Selling Company | Company | The original parent company from which Gumtree and Motors were spun off. |
| Adevinta | Selling Company | Company | A part of the initial joint ownership which was spun off. |
| 58.com | Bidding Company / Buyer | Company | The leading Chinese online marketplace operator that acquired Gumtree. |
| Eva Rathgeber | Editor-in-chief | Person | The author of the case study article. |
| Felix Homann | Partner at Novum Capital | Person | Provided insights for the case study through an interview. |