Feeds

eBay splashes $2.4bn for ecommerce services firm

It's entirely complementary

  • alert
  • submit to reddit

SANS - Survey on application security programs

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. ®

High performance access to file storage

More from The Register

next story
Sorry London, Europe's top tech city is Munich
New 'Atlas of ICT Activity' finds innovation isn't happening at Silicon Roundabout
MtGox chief Karpelès refuses to come to US for g-men's grilling
Bitcoin baron says he needs another lawyer for FinCEN chat
Dropbox defends fantastically badly timed Condoleezza Rice appointment
'Nothing is going to change with Dr. Rice's appointment,' file sharer promises
Audio fans, prepare yourself for the Second Coming ... of Blu-ray
High Fidelity Pure Audio – is this what your ears have been waiting for?
Did a date calculation bug just cost hard-up Co-op Bank £110m?
And just when Brit banking org needs £400m to stay afloat
Zucker punched: Google gobbles Facebook-wooed Titan Aerospace
Up, up and away in my beautiful balloon flying broadband-bot
Apple DOMINATES the Valley, rakes in more profit than Google, HP, Intel, Cisco COMBINED
Cook & Co. also pay more taxes than those four worthies PLUS eBay and Oracle
prev story

Whitepapers

Designing a defence for mobile apps
In this whitepaper learn the various considerations for defending mobile applications; from the mobile application architecture itself to the myriad testing technologies needed to properly assess mobile applications risk.
3 Big data security analytics techniques
Applying these Big Data security analytics techniques can help you make your business safer by detecting attacks early, before significant damage is done.
Five 3D headsets to be won!
We were so impressed by the Durovis Dive headset we’ve asked the company to give some away to Reg readers.
The benefits of software based PBX
Why you should break free from your proprietary PBX and how to leverage your existing server hardware.
Securing web applications made simple and scalable
In this whitepaper learn how automated security testing can provide a simple and scalable way to protect your web applications.