OLX Brasil Acquires Grupo Zap for R$2.9 Billion

In early March, leading online marketplace OLX Brasil announced the acquisition of its real estate competitor, Brazilian proptech Grupo Zap, for R$2.9 billion.

The deal will allow OLX to significantly boost its footprint in the real estate segment, particularly via its online marketplaces. The transaction is subject to pending antitrust approval by Brazil’s Administrative Council for Economic Defense (CADE), but is expected to be concluded by the second semester of 2020.

According to the CEO of OLX Brasil, Andries Oudshoorn, the merger between the companies “will lead to innovation in the Brazilian real estate sector, making buying, selling and renting real estate much more convenient and efficient.”

OLX, a fifty-fifty joint venture between Prosus NV (controlled by South Africa’s Naspers Ltd) and Adevinta (owned by Norway’s Schibsted ASA), has been one of the fastest-growing tech companies in Brazil and should further expand its presence in the market with this deal.

In Brazil, renowned firms Pinheiro Guimarães Advogados and Machado Meyer Advogados advised Grupo Zap and its shareholders, respectively, while full-service powerhouse Mattos Filho, Veiga Filho, Marrey Jr. e Quiroga Advogados served as counsel to OLX Brasil.

The deal also involved leading international firms, with Cravath, Swaine & Moore LLP representing OLX and Gunderson, Dettmer Stough Villeneuve Franklin & Hachigian LLP advising Grupo Zap.