Ebay on Monday announced that it has agreed to buy e-commerce service provider GSI Commerce for about 2.4 billion U.S. dollars.
Ebay offered GSI shareholders 29.25 dollars per share in cash, representing a 51 percent premium over GSI's closing stock price on March 25, and a 47 percent premium over the average closing price of GSI's common stock over the most recent 30 trading days.
"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," John Donahoe, eBay's chief executive officer, said in a statement.
GSI, headquartered in the U.S. state of Pennsylvania, provides e-commerce services including technology, order management, payment processing, fulfillment and customer care. It now boasts over 180 customers across 14 merchandise categories.
"With its complementary strengths, GSI will extend the power of our portfolio," Donahoe noted.
Ebay also announced that as part of the transaction, it plans to sell 100 percent of GSI's licensed sports merchandise business and 70 percent of ShopRunner and Rue La La, two shopping sites owned by GSI, saying those businesses are not core to its long- term growth strategy.
The acquisition, to be financed with cash and debt, is expected to close in the third quarter of 2011 pending regulatory and GSI shareholder approval, Ebay said.