March 28, 2011, 11:25 AM

eBay to buy GSI Commerce

(Page 2 of 2)

EBay in February told analysts that it expects to increase revenue by 10% to 14% annually through 2013 and that it is aggressively pursuing innovations and opportunities. “We see a crystal ball full of opportunities,” said Bob Swan, eBay’s chief financial officer. “The role innovation is playing across our business is accelerating.”

Swan said during the conference call that eBay will acquire seven of GSI's nine fulfillment centers. GSI has seven domestic and two international fulfillment centers, including one domestic center operated by Fanatics. The new holding company to be headed by GSI's Rubin will take the Fanatics center and one other yet to be named, while eBay takes the remaining seven, Swan said.

EBay executives added that, eventually, some of eBay's largest merchants will have the opportunity to use some of GSI's fulfillment capabilities. But eBay declined to say when that might happen.

EBay says it will pay $29.25 per share for GSI stock, a 47% premium over GSI’s average closing share price over the last 30 trading days and a 51% premium over Friday's closing price for GSI stock. GSI also gets a 40-day window to shop for a better deal, and eBay says it has the right to match any higher offer GSI gets. EBay says the deal will be financed with cash and debt.

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