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http://techcrunch.com/2011/03/28/ebay-to-acquire-gsi-commerce-for-2-4-billion/?utm_source=feedburner&utm_medium=feed&utm_campaign=Feed%3A+Techcrunch+%28TechCrunch%29&utm_content=My+Yahoo

eBay Acquires GSI Commerce For $2.4 Billion In Cash And Debt


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

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… Learn More

eBay

Website: ebay.com
Location: San Jose, California, United States
Founded: September 1, 1995
IPO: September 21, 1998
Founded in 1995 in San Jose, Calif., 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… Learn More


Eric D. Schwerin
Rosemont Seneca Partners, LLC
1010 Wisconsin Ave., NW
Suite 705
Washington, DC 20007
(202) 333-1880
eschwerin@rosemontseneca.com
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