eBay is to buy e-commerce solutions and services provider GSI Commerce for $2.4 billion (£1.5 billion).
The deal is expected to close in the third quarter of this year, and will give eBay access to GSI’s comprehensive portfolio of e-commerce solutions and digital marketing tools, and will complement the existing business model comprised of eBay’s marketplace and PayPal’s financial transaction service.
The move is expected to provide growth opportunities for eBay, which has seen most of its revenue growth come from PayPal, and will allow it to compete directly with Amazon.com. Thanks to GSI’s existing relationships with around 180 large retailers, eBay can now establish a foothold in retail.
“Technology is changing how consumers shop, and retailers and brands are changing how they compete,” said eBay’s president and CEO, John Donahoe. “Technology is changing how consumers shop, and retailers and brands are changing how they compete.”