Online classifieds multinational OLX, which is wholly-owned by JSE-listed consumer Internet investment group Prosus, has entered into an agreement to acquire French automotive classifieds platform La Centrale from private equity investment firm Providence Equity Partners for €1.1-billion.

Closing of the transition is expected by year-end, and is subject to a customary employee consultation process.

The acquisition marks OLX's entry into Western Europe and France's structurally attractive automotive market. La Centrale is recognised as a specialised automotive platform in France, with strength in higher-value vehicles and deep trust among sellers and consumers.

La Centrale provides OLX with an immediate leading position in one of Europe's largest used car markets. By combining OLX's scale and technology with La Centrale's local expertise and strong brand, the business is well-positioned to attract more dealers and expand their partnerships, enhance the customer experience and accelerate revenue growth, Prosus says in a statement.

The transaction strengthens OLX's European automotive portfolio in an attractive market, and will also bring in a strong leadership team to help build Prosus' ambition to create a European e-commerce ecosystem.

“La Centrale is a natural fit within our classifieds portfolio. Our strategy is to unleash the growth potential of vertical marketplaces, building strong regional leaders by scaling businesses using our proprietary AI technology,” says OLX CEO Christian Gisy.

“La Centrale's strong market position and talented team are the perfect foundation to deliver our trusted, innovative, customer-first technology solutions to France,” he says.

“La Centrale has long been a trusted destination for dealers and consumers in France. We believe that joining forces with OLX and Prosus will allow us to expand that mission, accelerate innovation and deliver even greater value to our customers,” says La Centrale CEO Philippe Chainieux.

Further, La Centrale strengthens Prosus' lifestyle e-commerce ecosystem in Europe and highlights its commitment to invest in the people and platforms shaping the future of e-commerce in the region, says Prosus CEO Fabricio Bloisi.

“La Centrale will expand our footprint into one of Europe's most dynamic technology markets and unlock new opportunities to innovate, scale, and deliver even greater value to consumers and partners through AI. I expect to invest more in AI technology in France,” he says.

Further, the French car market is healthy and resilient, with solid growth potential in the dealer segment. The ongoing shift of the used cars market towards professional sellers presents significant upside as the dealership landscape matures and consolidates.

Professional dealers currently account for about 36% of used car sales in France, compared with about 70% in Germany, and the average value per dealer transaction sits below European benchmarks.

Simultaneously, margins on new cars are tightening, electric vehicle adoption is reshaping supply and consumers are increasingly turning to trusted digital platforms for transparency and choice.

Classifieds platforms like La Centrale are well-positioned to capture this opportunity by connecting professional sellers with a growing pool of value-conscious buyers, says Prosus.

Additionally, La Centrale's leadership has revitalised the brand in recent years. It has undergone a successful restructuring, strengthening its technology, user experience and overall market position, closing ground with its competitors.

This led to an improved financial performance, with classifieds revenues growing at a 12% compound annual growth rate.

The transaction also enhances Prosus' European ecosystem strategy. Prosus is building a European consumer platform and AI technology ecosystem. Its ecosystem approach will drive user engagement and customer loyalty, strengthen AI capabilities and help to optimise costs for its businesses, it says.

Prosus is already investing in AI for e-commerce, including for intelligent dispatching and hyper-personalised ordering. The company is building large commerce models, which are AI systems that will be the new operating systems for e-commerce.