Feeds

eBay splashes $2.4bn for ecommerce services firm

It's entirely complementary

Beginner's guide to SSL certificates

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. ®

The next step in data security

More from The Register

next story
Phones 4u slips into administration after EE cuts ties with Brit mobe retailer
More than 5,500 jobs could be axed if rescue mission fails
JINGS! Microsoft Bing called Scots indyref RIGHT!
Redmond sporran metrics get one in the ten ring
Driving with an Apple Watch could land you with a £100 FINE
Bad news for tech-addicted fanbois behind the wheel
Murdoch to Europe: Inflict MORE PAIN on Google, please
'Platform for piracy' must be punished, or it'll kill us in FIVE YEARS
Bono: Apple will sort out monetising music where the labels failed
Remastered so hard it would be difficult or impossible to master it again
Phones 4u website DIES as wounded mobe retailer struggles to stay above water
Founder blames 'ruthless network partners' for implosion
Sony says year's losses will be FOUR TIMES DEEPER than thought
Losses of more than $2 BILLION loom over troubled Japanese corp
Radio hams can encrypt, in emergencies, says Ofcom
Consultation promises new spectrum and hints at relaxed licence conditions
prev story

Whitepapers

Secure remote control for conventional and virtual desktops
Balancing user privacy and privileged access, in accordance with compliance frameworks and legislation. Evaluating any potential remote control choice.
WIN a very cool portable ZX Spectrum
Win a one-off portable Spectrum built by legendary hardware hacker Ben Heck
Intelligent flash storage arrays
Tegile Intelligent Storage Arrays with IntelliFlash helps IT boost storage utilization and effciency while delivering unmatched storage savings and performance.
High Performance for All
While HPC is not new, it has traditionally been seen as a specialist area – is it now geared up to meet more mainstream requirements?
Beginner's guide to SSL certificates
De-mystify the technology involved and give you the information you need to make the best decision when considering your online security options.