eBay has announced it will acquire GSI Commerce, which provides e-commerce fulfilment and online marketing services for retailers, in a deal worth $2.4bn.
eBay's acquisition of GSI Commerce will extend its offerings to retail businesses. Credit: eBay
The $2.4bn (£1.5bn) deal, announced on Monday, works out to $29.25 a share for GSI, a 51-percent premium to GSI's closing price on Friday. eBay said it will fund the GSI purchase with a combination of cash and stock. The acquisition isn't expected to lower non-GAAP earnings in 2011, but will shave 30 cents a share to 34 cents a share from GAAP earnings.
The acquisition extends what eBay is able to offer retail businesses from the current eBay Marketplaces and PayPal payment method model to a more complete line-up. It also adds to eBay's direct-to-customer fulfilment, including shipping and branded packaging, putting it on more level ground to compete with Amazon.
For more on this ZDNet UK-selected story, see eBay acquires GSI Commerce for $2.4 billion, eyes Amazon on fulfillment on ZDNet.com.
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