The German digital publishing company acquires the Israeli classifieds portal to grow its portfolio and expand in the Middle East
German Axel Springer Digital Classifieds has acquired Israeli classifieds portal Yad2 for EUR 165 million as part of its plan to become the world’s leading digital publishing company.
“Axel Springer has a broad experience in the classifieds business and as a leading digital publisher of a strong network, which will definitely be advantageous to the further development of yad2,” Yad2 chairman Ilan Yeshua said in a May 6 statement. “Beyond that, Axel Springer is very committed to Israel. I would particularly like to thank the passionate team of yad2 for their performance and dedication. We are truly convinced that the company and its employees will be in good hands.”
ASDC is a joint venture owned 70% by Axel Springer and 30% by General Atlantic. It announced on Tuesday, May 6 that it will acquire 100% of Yad2 operator Coral-Tell Ltd., subject to certain regulatory approvals.
Middle East expansion
Founded in 2005, Yad2 is the leading classifieds platform in Israel, receiving about 10,000 ads for property, autos and other items daily. The Tel Aviv company has 100 employees and is led by CEO Yavin Gill More.
“yad2 is the clear market leader, highly profitable and expanding and thereby serves as an ideal complement portfolio to our international classifieds,” Dr. Andreas Wiele, president of marketing and classified ad models at Axel Springer, said in the statement.
Axel Springer is looking to become the leading digital publisher and as of 2014 has divided itself into three segments: paid models, marketing models and classified ad models. In the first three months of 2014, Axel Springer’s total revenues for the quarter reached EUR 692.3 million. The classified ad models generated EUR 111.2 million in revenues, reflecting an 11.8% increase from the first quarter in 2013.
Some of Axel Springer’s other classified portals include European online job website StepStone, U.K. job portal Totaljobs, French property portals SeLoger and Immoweb.be, German property portal Immonet and German city portal meinestadt.de.