Gumtree SA, the country's biggest online classified advertisement website, has been bought by Durban-based company Impresa Capital, it was announced on Friday.
The e-commerce business, which was launched in 2004, was previously owned by multinational giant eBay and then Adevinta. The new owners, who are the majority shareholders of the Ignition Group, say the acquisition is the "next step" to taking the business in a new and exciting direction.
"As a proudly African-rooted business, this acquisition cements our strategy of investments in the technology and media sectors and provides our portfolio of businesses with a solid platform for growth," said Sean Bergsma, co-founder and CEO of Ignition Group.
"The accelerated growth of Gumtree on the African continent will see new jobs being created, and with the technology developed further using local South African talent, it means exciting times ahead for all stakeholders," he added.
Claire Cobbledick, the general manager of Gumtree SA, said that as a community-based online marketplace, local expertise and knowledge "presents a strategic advantage" for the website.
"And so being acquired by a South African investor is an important and exciting next step for the Gumtree SA business. We look forward to unlocking synergies within the Ignition Group businesses and network," says Cobbledick.
The deal is still subject to final regulatory approvals.