WEXFORD-BASED classified website DoneDeal has attracted an investment from Norwegian media group Schibsted that could lead to a full takeover.
Under the terms of the agreement, Schibsted will acquire 50.09 per cent of DoneDeal, which was established by Swedish native Fred Karlsson and his Irish wife Geraldine Karlsson in 2005.
Within two years, Schibsted could increase its stake to 90.1 per cent and will have the right to buy out 100 per cent, at market valuations, in five years. The Norwegian company, which is already involved in online classifieds in several countries, posted sales of about €1.8 billion last year.
DoneDeal had revenues of slightly more than €3 million in the year to the end of April, 2011, with margins of between 30 and 40 per cent. With the sale likely to have been agreed at a multiple of profits, the business has almost certainly been valued at several million euros under the deal.
“This will really help to bring DoneDeal to the next level,” said Mr Karlsson, who will remain at the helm of the business under the new ownership structure.
DoneDeal allows consumers to place classified adverts accompanied by up to 10 photographs and video for a flat fee of €3. On average, it advertises 85,000 new items each month, with categories of goods sold including animals, farming items and furniture.
DoneDeal is one of the Republic’s most popular marketplaces for cars.
Mr Karlsson said he hoped the business would now expand, with a move into the North already under way.
“We’ve been comparing our numbers with other countries. There’s still room for more people to buy and sell second hand,” he said.
Mr Karlsson expects the business to retain its headquarters in Wexford and to grow there. The company employs eight people as well as its owners.
Mr Karlsson arrived in Ireland in 1997, met his wife Geraldine, and then returned with her from Sweden to settle in Wexford in 2004. In establishing DoneDeal, the couple were inspired by the ease with which they had sold their belongings online in Sweden before leaving the country.
DoneDeal took legal advice from Dublin law firm, LK Shields.
