Ebay to acquire GSI Commerce
SAN JOSE, Calif. & KING OF PRUSSIA, Pa. -- Ebay Inc. announced that it has agreed to acquire GSI Commerce, a leading provider of e-commerce and interactive marketing services, for $29.25 a share, or total consideration of approximately $2.4 billion. The acquisition, which will be financed with cash and debt, is expected to close in the third quarter of 2011.
“We intend to lead the next generation of commerce innovation. The acquisition of GSI, which offers the most comprehensive integrated suite of online commerce and interactive marketing services available, will significantly strengthen our ability to connect buyers and sellers worldwide,” said John Donahoe, Ebay Inc. President and CEO. “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.”
As part of the transaction, eBay will divest 100% of GSI’s licensed sports merchandise business and 70% of ShopRunner and Rue La La. Ebay believes these businesses are not core to its long-term growth strategy. These assets will be sold to a newly formed holding company, which will be led by GSI founder and CEO Michael Rubin.