BaltCap Private Equity Fund II acquires leading Estonian classified portals and Kuldne Börs


Primus Tallinn office advised leading Baltic private equity house BaltCap on acquisition of 100% of Sanoma Baltics AS, the operator of Estonian online classified sites auto24 and Kuldne Börs from Sanoma Media Finland Oy.

BaltCap Private Equity Fund II and the management team signed on 15.03.2017 an agreement to acquire Sanoma Baltics AS. The company operates the auto24 classified portal in Estonia with a strong position in car, motorbike, boat and heavy equipment advertising. It also operates the Kuldne Börs generalist classifieds site in a variety of categories, such as construction materials, agricultural equipment, pets and household goods to name a few.

“The strong local classified sites auto24 and Kuldne Börs are very well managed and operate in a growing market. The sites provide a very useful service to Estonian consumers and businesses by providing an efficient online marketplace. We are excited to work together with the management team to further improve and grow the business of both auto24 and Kuldne Börs,” said Oliver Kullman, partner at BaltCap.

Margus Tomberg, CEO of Sanoma Baltics added, “The new owner BaltCap opens up solid investment and development opportunities to strengthen our existing business and also to expand beyond classified listings. We are looking forward to developing new and innovative solutions to address customer needs.”

The transaction is expected to close in spring 2017, following approval from the Estonian Competition Authority.

The financing for the transaction is partly provided by LHV pension funds, managed by AS LHV Varahaldus.

BaltCap Private Equity Fund II (BPEF II) makes equity investments in innovative companies based in the Baltic region focusing on buy-and-build opportunities. BPEF II was established in cooperation with the European Investment Fund (EIF) involved in the project through the Baltic Innovation Fund (BIF). The BIF is an initiative created by cooperation between the Republic of Estonia, the Republic of Latvia, the Republic of Lithuania and EIF.

Primus’ team assisted BaltCap in all stages of the transaction, including legal due diligence of the target as well as financing and conducting negotiations of the transaction. The legal team was led by partner Ermo Kosk and included, among others, senior associates Sandra Värk, and Dmitri Rozenblat, special counsel Toomas Kasesalu and associate Marilin Laud.

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