Feeds

eBay splashes $2.4bn for ecommerce services firm

It's entirely complementary

Providing a secure and efficient Helpdesk

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. ®

Beginner's guide to SSL certificates

More from The Register

next story
Scrapping the Human Rights Act: What about privacy and freedom of expression?
Justice minister's attack to destroy ability to challenge state
WHY did Sunday Mirror stoop to slurping selfies for smut sting?
Tabloid splashes, MP resigns - but there's a BIG copyright issue here
Google hits back at 'Dear Rupert' over search dominance claims
Choc Factory sniffs: 'We're not pirate-lovers - also, you publish The Sun'
EU to accuse Ireland of giving Apple an overly peachy tax deal – report
Probe expected to say single-digit rate was unlawful
Inequality increasing? BOLLOCKS! You heard me: 'Screw the 1%'
There's morality and then there's economics ...
Hey Brit taxpayers. You just spent £4m on Central London ‘innovation playground’
Catapult me a Mojito, I feel an Digital Innovation coming on
While you queued for an iPhone 6, Apple's Cook sold shares worth $35m
Right before the stock took a 3.8% dive amid bent and broken mobe drama
EU probes Google’s Android omerta again: Talk now, or else
Spill those Android secrets, or we’ll fine you
prev story

Whitepapers

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.
Storage capacity and performance optimization at Mizuno USA
Mizuno USA turn to Tegile storage technology to solve both their SAN and backup issues.
The next step in data security
With recent increased privacy concerns and computers becoming more powerful, the chance of hackers being able to crack smaller-sized RSA keys increases.
Security for virtualized datacentres
Legacy security solutions are inefficient due to the architectural differences between physical and virtual environments.
A strategic approach to identity relationship management
ForgeRock commissioned Forrester to evaluate companies’ IAM practices and requirements when it comes to customer-facing scenarios versus employee-facing ones.