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eBay to Buy GSI Commerce for $2.4 Billion

NEW YORK ( TheStreet) -- eBay (EBAY - Get Report) announced on Monday that it will acquire GSI Commerce (GSIC) for $2.4 billion, or $29.25 a share.

The deal, which is expected to close in the third quarter, represents a 51% premium over GSI's closing price on March 25.

"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 John Donahoe, eBay president and CEO. "Combined with eBay Marketplaces and PayPal, we believe GSI will enhance our position as the leading strategic

GSI Commerce offers a plethora of services, including the back-end services and Internet shopping operations for more than 100 retailers, including Toys 'R' Us.

It also owns flash fashion site Rue La La. eBay said it plans to shed Rue La La, as well as several other business. Rue La La will be put into a holding company that will be run by GSI's CEO Michael Rubin.

In 2010, GSI Commerce reported a loss of $36.5 million on revenue of $1.36 billion.

--Written by Jeanine Poggi in New York.



>To contact the writer of this article, click here: Jeanine Poggi.

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