Gumtree Australia Divests Capital Markets Arm for Growth Focus
Deal News | Jun 30, 2025 | Aim Group
Gumtree Australia has announced the sale of its capital markets business to the UK-based fintech company, ADVFN, for AUD6.8 million. This transaction involves entities such as The Market Online, HotCopper, and StockHouse, encompassing media and trading platforms. This strategic divestment will generate AUD2 million in cash for Gumtree, part of which will be used to repay shareholder loans and debts with the Commonwealth Bank and the Royal Bank of Canada. ADVFN, known for its expertise in financial information, sees this acquisition as a seamless fit, underscoring its commitment to expanding its presence in related business areas. The decision, as outlined by Gumtree’s chairman Bruce Rathie, came after a thorough strategic review instigated by third-party interest. Gumtree's CEO, Tommy Logtenberg, has executed substantial transformations to streamline the business and refocus on its core advertising and classified operations, moving away from capital-intensive sectors. The divestment also marks nearly a reverse takeover since acquiring relevant assets from Adevinta in 2022, with the goal to boost shareholder value and investment appeal.
Sectors
- Financial Services
- Classifieds and Online Marketplaces
- Financial Technology (Fintech)
Geography
- Australia – The seller, Gumtree Australia, is based in Australia, and the business transactions are predominantly related to this geography.
- United Kingdom – ADVFN, the acquiring company, is based in the UK.
- Canada – The transaction involves a Canada-based entity, StockHouse, as part of Gumtree Australia's capital markets business.
Industry
- Financial Services – The article discusses the sale of a capital markets business, which involves financial information and trading platforms, relevant to the financial services industry.
- Classifieds and Online Marketplaces – Gumtree focuses on its core operations in the classifieds and online marketplace sector after the divestment.
- Financial Technology (Fintech) – ADVFN, the acquiring company, operates in the fintech sector, offering financial information services.
Financials
- AUD6.8 million – The sale price of Gumtree Australia's capital markets business to ADVFN.
- AUD2 million – The amount of cash generated for Gumtree after covering transaction costs.
- AUD2.8 million – To be used for repayment of outstanding shareholder loans.
- AUD750,000 – Allocation towards paying the company's loan facility with the Commonwealth Bank.
- AUD1.3 million – Loan with the Royal Bank of Canada to be transferred to ADVFN.
Participants
| Name | Role | Type | Description |
|---|---|---|---|
| Gumtree Australia | Selling Company | Company | An Australian online classifieds and marketplace business. |
| ADVFN | Bidding Company | Company | A UK-based fintech company specializing in financial information services. |
| The Market Online | Target Company | Company | A financial news site formerly known as The Market Herald. |
| HotCopper | Target Company | Company | A stock trading forum included in the capital markets sale. |
| StockHouse | Target Company | Company | A Canada-based stock trading forum included in the transaction. |
| Bruce Rathie | Chairman | Person | Chairman of Gumtree Australia who commented on the strategic decision. |
| Tommy Logtenberg | CEO | Person | CEO of Gumtree Australia focused on transformation and core business strategy. |
| Twila Jensen | Managing Director | Person | Former Managing Director of the capital markets division who stepped down post-sale. |
| Jag Sanger | Former CEO | Person | Former CEO of Gumtree Australia with prior ambitions to launch a new print newspaper. |