Menu
EBay to sell its enterprise unit four years after buying it

EBay to sell its enterprise unit four years after buying it

A group of privacy equity firms will pay cash to buy the former GSI Commerce

EBay has reached a deal to sell its enterprise unit, a division focused on building and running online shopping sites for bricks-and-mortar retailers as well as provides marketing services, for less than half than it paid four years ago.

The US$925 million deal, announced Thursday, will give control of eBay Enterprise to a group of private equity firms led by Sterling Partners and Permira Funds, eBay said in a press release.

EBay acquired its enterprise unit, then called GSI Commerce, in June 2011, for $2.4 billion. The unit has more than 500 customers, including Dick's Sporting Goods, American Eagle Outfitters, Abercrombie & Fitch, PetSmart, Ikea and Major League Baseball. Many of those businesses compete for online sales with eBay itself.

The sale of eBay Enterprise was prompted by "increasingly divergent business opportunities" between the enterprise unit and the rest of eBay, a spokeswoman said by email.

GSI was founded in 1995 as a sporting goods seller and branched out into e-commerce in the 2000s.

The sale is an all-cash deal, the spokeswoman said. EBay expects the sale to close in the second half of this year, and eBay Enterprise to be renamed by early 2016.

Also on Thursday, eBay reported $4.4 billion in revenue for the second quarter of 2015, up from $4.1 billion a year earlier. Excluding one-time costs, net income was up 5 percent to $931 million.

The quarterly earnings report comes just four days before eBay will split off its PayPal Holdings business to a separate entity. PayPal's revenue for the quarter was $2.3 billion, up 16 percent from a year earlier.

Earnings per share was $0.76, beating analyst estimates by $0.03. The company's share price was up 4.7 percent in Thursday morning trading.

Read more: CMO50 #11: Steven Brennen, EBay Australia

Grant Gross covers technology and telecom policy in the U.S. government for The IDG News Service. Follow Grant on Twitter at GrantGross. Grant's email address is grant_gross@idg.com.

Follow Us

Join the New Zealand Reseller News newsletter!

Error: Please check your email address.

Tags business issuese-commerceebaySterling PartnersPermira FundsinternetMergers and acquisitions

Featured

Slideshows

Arrow exclusively introduces Tenable Network Security to A/NZ channel

Arrow exclusively introduces Tenable Network Security to A/NZ channel

Arrow Electronics introduced Tenable Network Security to local resellers in Sydney last week, officially launching the distributor's latest security partnership across Australia and New Zealand. Representing the first direct distribution agreement locally for Tenable specifically, the deal sees Arrow deliver security solutions directly to mid-market and enterprise channel partners on both sides of the Tasman.

Arrow exclusively introduces Tenable Network Security to A/NZ channel
Examining the changing job scene in the Kiwi channel

Examining the changing job scene in the Kiwi channel

Typically, the New Year brings new opportunities for personnel within the Kiwi channel. 2017 started no differently, with a host of appointments, departures and reshuffles across vendor, distributor and reseller businesses. As a result, the job scene across New Zealand has changed - here’s a run down of who is working where in the year ahead…

Examining the changing job scene in the Kiwi channel
​What are the top 10 tech trends for New Zealand in 2017?

​What are the top 10 tech trends for New Zealand in 2017?

Digital Transformation (DX) has been a critical topic for business over the last few years and IDC is now predicting a step change as DX reaches macroeconomic levels. By 2020 a DX economy will emerge and it will become the core of what New Zealand industries focus on. From the board level through to the C-Suite, Kiwi organisations must be prepared to think and act digital when the DX economy emerges in 2017.

​What are the top 10 tech trends for New Zealand in 2017?
Show Comments