Global online retailer and auction site eBay has confirmed the full purchase of e-commerce and interactive marketing services firm GSI Commerce, in a statement released today.
The deal is reported to be worth a huge $2.4 billion (£1.5 billion), or $29.25 a share, representing a 51 per cent premium over GSI’s March 25th closing price and a 47 per cent premium over its average closing price over the 30 trading days to March 28th.
GSI has long-term commerce service relationships with leading retailers and brands, with more than 180 customers across 14 merchandise categories.
John Donahoe, eBay President and CEO, said: “We intend to lead the next generation of commerce innovation.
“The acquisition of GSI, which offers the most comprehensive integrated suite of online and interative marketing services available, will significantly strengthen our ability to connect buyers and sellers worldwide.”
Following the acquisition eBay plans to fully dispose of GSI’s licensed sports merchandise business, and to sell off 70 per cent of its additional assets ShopRunner and Rue La La, to a new holding company headed up by GSI CEO Michael Rubin.
This deal will further extend the e-tailer’s online service offer, which already sees it polled as the best social media brand and saw it increase sales by 25 per cent in the final quarter of the last financial year.
“Technology is changing how consumers shop, and retailers and brands are changing how they compete. With its complementary strengths, GSI will extend the power of our portfolio,” Donahoe added.
“With eBay, PayPal, GSI and our global platform capabilities, we are focused on delivering new ways for retailers and brands of all sizes - from sole proprietors to large merchants - to drive innovation, engage customers and help people shop anytime, anywhere and on any device.”