Feeds

eBay splashes $2.4bn for ecommerce services firm

It's entirely complementary

  • alert
  • submit to reddit

Reducing security risks from open source software

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. ®

Mobile application security vulnerability report

More from The Register

next story
BBC goes offline in MASSIVE COCKUP: Stephen Fry partly muzzled
Auntie tight-lipped as major outage rolls on
iPad? More like iFAD: We reveal why Apple fell into IBM's arms
But never fear fanbois, you're still lapping up iPhones, Macs
Nadella: Apps must run on ALL WINDOWS – PCs, slabs and mobes
Phone egg, meet desktop chicken - your mother
White? Male? You work in tech? Let us guess ... Twitter? We KNEW it!
Grim diversity numbers dumped alongside Facebook earnings
HP, Microsoft prove it again: Big Business doesn't create jobs
SMEs get lip service - what they need is dinner at the Club
ITC: Seagate and LSI can infringe Realtek patents because Realtek isn't in the US
Land of the (get off scot) free, when it's a foreign owner
Dude, you're getting a Dell – with BITCOIN: IT giant slurps cryptocash
1. Buy PC with Bitcoin. 2. Mine more coins. 3. Goto step 1
There's NOTHING on TV in Europe – American video DOMINATES
Even France's mega subsidies don't stop US content onslaught
You! Pirate! Stop pirating, or we shall admonish you politely. Repeatedly, if necessary
And we shall go about telling people you smell. No, not really
prev story

Whitepapers

Designing a Defense for Mobile Applications
Learn about the various considerations for defending mobile applications - from the application architecture itself to the myriad testing technologies.
How modern custom applications can spur business growth
Learn how to create, deploy and manage custom applications without consuming or expanding the need for scarce, expensive IT resources.
Reducing security risks from open source software
Follow a few strategies and your organization can gain the full benefits of open source and the cloud without compromising the security of your applications.
Boost IT visibility and business value
How building a great service catalog relieves pressure points and demonstrates the value of IT service management.
Consolidation: the foundation for IT and business transformation
In this whitepaper learn how effective consolidation of IT and business resources can enable multiple, meaningful business benefits.