eBay Closes $2.4 Billion Acquisition Of GSI Commerce
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.
As we wrote last week, a lawsuit was filed in late March by an investor, claiming that the $2.4 billion offer at $29.95 per share was a “bargain price.” eBay and GSI subsequently settled the suit, with GSI Shareholders receiving GSI $0.33 a share (separate from the $29.25 per share payout), bringing the total acquisition and merger price to roughly $3 billion.
For eBay, GSI Commerce was its second largest acquisition ever. The company’s previous big dollar acquisitions include PayPal for $1.5 billion and Skype for $4.1 billion.
GSI Commerce will operate as a separate business unit led by Chris Saridakis as president. Saridakis will report to eBay CEO and President John Donahoe. eBay has also divested a number of GSI’s former properties, including 100 epercent of GSI’s sports merchandise business and 70 percent of both Rue La La and Shop Runner. These businesses will be part of a newly formed holding company led by GSI founder and former CEO Michael Rubin and will be completely separate from eBay and GSI.