Naspers’s Prosus, through its OLX Brazil business, has agreed to spend R$2.9-billion (R9.9-billion) to buy Grupo ZAP, described as one of the fastest-growing technology companies in the South American country.

OLX Brazil is a 50/50 joint venture between Adevinta and the Amsterdam-listed Prosus, which was spun out of Naspers last year. The investment, for 100% of Grupo ZAP, will be equally financed by OLX Brazil’s two shareholders, with Adevinta financing its share through existing bank facilities.

The transaction is subject to approval by Brazil’s competition authorities.

“OLX Brazil and Grupo ZAP, currently among the most relevant players in the online real-estate classifieds and advertising sector in Brazil, are highly complementary platforms,” OLX said in a statement.

“The acquisition will therefore offer a great opportunity for synergies and value creation. The merger will help boost the real-estate market, offering a better range of services with a broader database of properties.”

With Grupo ZAP, OLX Brazil will be able to offer its users more than 12 million listings from more than 40 000 real-estate agencies and thousands of private listers, as well as allowing its advertisers to reach a larger audience, it said.

Growth opportunities

In 2018, Grupo ZAP had net revenues of R$217-million (R738.7-million) and earnings before interest, tax, depreciation and amortisation of -R$18-million (-R61.3-million), with an average of 28 million visits per month in 2019.

Martin Scheepbouwer, CEO of OLX Group, the classifieds business of Prosus, said: “The acquisition of Grupo ZAP promises to advance the real-estate sector in Brazil and develop technology that better serves all our customers. We already have a strong presence in the online real-estate market in Europe, South Africa and other Latin American countries, and we look forward to exploring further growth opportunities in Brazil.”