Feeds

eBay splashes $2.4bn for ecommerce services firm

It's entirely complementary

Intelligent flash storage arrays

eBay has splashed out $2.4bn to buy ecommerce services outfit GSI Commerce in a deal will do little to dampen concerns about wonky valuations in the tech sector.

eBay is paying $29.25 a share for the firm, which it says is a 51 per cent premium over the target's Friday closing price, and a 47 per cent premium over its average price for the last 30 days.

GSI offers a range of services for e-merchants, including engagement and marketing services through to fulfilment.

Its About Us page notes, among other things, "Our only business is serving you". It will be amusing to see how it manages to square that with having to serve its new owner...

eBay, for its part, said the deal was complementary, giving the internet company "the most comprehensive integrated suite of online commerce and interactive marketing services available [which] will significantly strengthen our ability to connect buyers and sellers worldwide."

The deal should deliver synergies of $60m by 2013, being EPS neutral this year and accretive form next, eBay claimed.

Market observers have been making warning noises lately about the valuations being slapped on hot tech companies, with Facebook and Twitter giving rise to eye-watering sums some find hard to reconcile with their actual businesses.

While eBay's buy is comparatively small, squarely in its e-retail niche, and has been running for over a decade, the premium it is paying is bound to cause at least some raised eyebrows. ®

Top 5 reasons to deploy VMware with Tegile

More from The Register

next story
BIG FAT Lies: Porky Pies about obesity
What really shortens lives? Reading this sort of crap in the papers
Assange™ slumps back on Ecuador's sofa after detention appeal binned
Swedish court rules there's 'great risk' WikiLeaker will dodge prosecution
You think the CLOUD's insecure? It's BETTER than UK.GOV's DATA CENTRES
We don't even know where some of them ARE – Maude
prev story

Whitepapers

Why cloud backup?
Combining the latest advancements in disk-based backup with secure, integrated, cloud technologies offer organizations fast and assured recovery of their critical enterprise data.
Forging a new future with identity relationship management
Learn about ForgeRock's next generation IRM platform and how it is designed to empower CEOS's and enterprises to engage with consumers.
How to determine if cloud backup is right for your servers
Two key factors, technical feasibility and TCO economics, that backup and IT operations managers should consider when assessing cloud backup.
Reg Reader Research: SaaS based Email and Office Productivity Tools
Read this Reg reader report which provides advice and guidance for SMBs towards the use of SaaS based email and Office productivity tools.
Security and trust: The backbone of doing business over the internet
Explores the current state of website security and the contributions Symantec is making to help organizations protect critical data and build trust with customers.