eBay in deal to buy GSI Commerce for $1.9 billion
28 Mar 2011
Online auction and shopping website eBay Inc today said it has agreed to acquire e-commerce company GSI Commerce Inc in a cash-and-debt deal worth about 1.9 billion.
The acquisition will involve cash payment of $1.9 billion and a loan of $467 million to GSI founder Rubin's new company. The deal is expected to close in the third quarter of 2011.
eBay will pay $29.25 per share for GSI, which represents a premium of about 51 per cent over GSI's latest closing price. (The stock last traded above $29 in mid-July last year).
The deal will strengthen eBay's Marketplace business, the company said in a statement today.
GSI Commerce, based in King of Prussia, Pa, provides e-commerce services to retailers and other companies. The company reported a 36 per cent increase in 2010 revenue at $1.36 billion.
"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," eBay chief executive John Donahoe said in a statement.
