eBay to buy GSI Commerce for $2.4 billion

Mar 28, 2011
The internet auctioneer logo at eBay headquaters in Paris 2008. eBay announced Monday that it has agreed to acquire GSI Commerce, a provider of electronic commerce and interactive marketing services, for $29.25 a share or $2.4 billion.

Online auction giant eBay announced Monday that it has agreed to acquire GSI Commerce, a provider of electronic commerce and interactive marketing services, for $29.25 a share or $2.4 billion.

The San Jose, California-based eBay said the acquisition will be financed with cash and debt and is expected to close in the third quarter of the year.

John Donahoe, eBay's president and chief executive, said the acquisition of GSI "will significantly strengthen our ability to connect buyers and sellers worldwide.

"Combined with eBay Marketplaces and PayPal, we believe GSI will enhance our position as the leading strategic global commerce partner of choice for retailers and brands of all sizes," Donahoe said.

"Technology is changing how consumers shop, and retailers and brands are changing how they compete," he added. "With its complementary strengths, GSI will extend the power of our portfolio."

EBay said the $29.25 offer price is a 51 percent premium over GSI's closing price on Friday.

EBay shares were down 3.08 percent at $30.73 in early trading on Wall Street on Monday. GSI shares soared 52.45 percent to $29.55.

EBay said it will divest 100 percent of GSI's licensed sports merchandise business and 70 percent of ShopRunner and Rue La La as part of the acquisition.

"EBay believes these businesses are not core to its long-term growth strategy," eBay said. It said they will be sold to a newly formed holding company led by GSI founder and chief executive Michael Rubin.

EBay said that as part of the divestiture, it will loan the holding company $467 million and retain a 30 percent stake in Rue La La and ShopRunner. Rubin will invest $31 million in the holding company.

GSI has more than 180 customers across 14 merchandise categories including a number of leading retailers and brands.

Explore further: Android grabs 85% of smartphone market: survey

add to favorites email to friend print save as pdf

Related Stories

eBay goes shopping in Germany

Dec 20, 2010

US online auction giant eBay said Monday that it has agreed to buy brands4friends, Germany's largest online fashion shopping club, for 200 million dollars (150 million euros) in cash.

Top eBay e-commerce executive steps down

Sep 21, 2010

(AP) -- One of eBay's top executives is stepping down, leaving a void in the e-commerce company's largest division, which includes the namesake auction website.

Holiday shopping, PayPal help eBay 4Q profit rise

Jan 20, 2010

(AP) -- EBay Inc. said Wednesday its fourth-quarter earnings climbed, bolstered by growth in its PayPal payments business and a holiday shopping season that was healthier than the year before. The company ...

PayPal making belated foray in Japan, without eBay

Jul 28, 2010

(AP) -- PayPal, the online payment unit of Internet commerce firm eBay Inc., is planning to break into the Japanese market - the first time it has entered a region without eBay's powerful auction business.

EBay 3Q profit rises 23 percent

Oct 20, 2010

(AP) -- EBay Inc. on Wednesday said its third-quarter profit climbed 23 percent, helped by its growing PayPal business.

Recommended for you

Android grabs 85% of smartphone market: survey

10 hours ago

Smartphones powered by the Android operating system captured 85 percent of the worldwide market in the second quarter, threatening to marginalize rival platforms, a new survey shows.

Chinese man brings gay conversion therapy lawsuit

15 hours ago

(AP)—A gay Chinese man said Thursday he was suing a psychological clinic for carrying out electric shocks intended to turn him straight, as well as the search engine giant Baidu for advertising the center.

Alcatel loss narrows in 2Q but revenue stagnates

16 hours ago

(AP)—Telecommunications equipment company Alcatel-Lucent SA says its net loss narrowed in the second quarter thanks to lower accounting charges, while revenue stagnated and restructuring charges mounted.

User comments : 0