eBay has just announced that it has agreed to buy GSI Commerce, a provider of ecommerce 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 Q3 2011.
With more than 180 customers across 14 merchandise categories, GSI has long-term commerce services relationships with a wealth of retailers and brands. eBay says it expects GSI clients to benefit from eBay’s Marketplaces and PayPal services, particularly.
The merger consideration represents a 51 percent premium over GSI’s closing price on March 25, 2011. As usual, the transaction is subject to regulatory approval as well as other customary closing conditions.
Under the terms of the merger agreement, GSI Commerce may solicit acquisition proposals from third parties for a 40-day “go-shop” period continuing through May 6, 2011. The agreement, however, also provides eBay with a customary right to match a superior proposal.
As part of the transaction, eBay will divest businesses that it says are not core to its long-term growth strategy. The divestiture includes 100 percent of GSI’s licensed sports merchandise business and 70 percent of ShopRunner and Rue La La.
These assets will be sold to a newly formed holding company, which will be led by GSI founder and CEO Michael Rubin. eBay will loan said company $467 million in total, while Rubin will invest an additional $31 million in cash.
eBay will host a conference call at 8 am PST/11 am EST today to discuss this announcement.
GSI Commerce is a technology and services company that provides e-commerce, multichannel, and interactive marketing solutions to hundreds of brands and retailers in the U.S. and internationally. GSI is comprised of three business units: E-Commerce Services, Global Marketing Services and Consumer Engagement. E-Commerce Services provides an e-commerce technology platform for brands and retailers, in addition to multichannel, order fulfillment and customer call center services. The Global Marketing Services unit is comprised of e-mail and interactive marketing technology providers such as...
Founded in 1995 in San Jose, CA, eBay connects millions of buyers and sellers globally in the world’s largest online marketplace, utilizing PayPal to ensure secure transactions. The company also operates specialized marketplaces such as StubHub, the world’s largest ticket marketplace, and eBay Classifieds sites, which together have a presence in more than 1,000 cities around the world. eBay items can be sold either via a silent auction, in which users input the maximum price they are willing to...