eBay announces purchase of GSI Commerce
Posted: April 1, 2011
San Jose,CA-based ebay Inc. announced this week that it has agreed to acquire King of Prussia,PA-based GSI Commerce for approximately $2.4 billion. The acquisition, which will be financed with cash and debt, is expected to close during the third quarter of 2011.
GSI Commerce, a leading provider of e-commerce and interactive marketing services, has operated a customer fulfillment center in the Sky Park Industrial Center in Eau Claire since October, 2006.
"We intend to lead the next generation of commerce innovation. 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," said eBay Inc. President and CEO John Donahoe.
As part of the transaction, eBay will divest 100 percent of GSI's licensed sports merchandise business and 70 percent of ShopRunner and Rue La La. The assets will be sold to GSI Founder and CEO Michael Rubin, who will invest $31 million himself and borrow $467 million from eBay to acquire the assets through a newly-formed holding company.
Last year, GSI Commerce reported revenue of $1.36 billion, but lost $36.5 million. However, the company told investors it expected to be profitable for 2011.
eBay runs its flagship online auction site along with PayPal, its online payments business. TBL