eBay to Acquire GSI Commerce
SAN JOSE, Calif.-eBay has struck a deal to purchase GSI Commerce, parent company of the Smart Bargains and Rue La La shopping websites, for about $2.4 billion.
When the deal is closed, which is expected to take place in the third quarter, it will give eBay a larger foothold in home web retailing. Both Smart Bargains and Rue La La offer textiles, and Smart Bargains also showcases furniture and decorative accents. As part of the deal, GSI's founder and CEO, Michael Rubin, will form a holding company to buy back 70 percent of Rue La La and 100 percent of GSI's licensed sports merchandising business, but eBay will retain the remaining 30 percent stake in Rue La La.
GSI also provides platforms for e-commerce, multichannel retailing and digital marketing for businesses throughout the world. "The acquisition of GSI, which offers the most comprehensive integrated suite of online commerce and interactive marketing services, available, will significantly strengthen our ability to connect buyers and sellers worldwide," said John Donahoe, president and CEO of eBay.