Private equity firm Apollo Global Management will take Rackspace private in the all-cash deal.
Online auction site eBay Inc. has acquired World of Good Inc., which sells so-called “fair trade” products from the developing world.
Online auction eBay Inc. this week acquired World of Good Inc., a five-year-old company that sells products from the developing world.
Worldofgood.com sells products across 15 categories, including clothing, beauty products and furniture. Products on the site’s home page Friday included homemade jewelry, notebooks and wreaths, reusable water bottles, artwork and natural lotions. World of Good says it sells products based on the principles of fair trade, which generally aim to pay higher prices to producers in developing countries. The site also focuses on what it calls eco-friendly products. The online marketplace includes hundreds of sellers from 85 countries, World of Good says.
"We are excited about the opportunity to scale the World of Good mission to an unprecedented degree through eBay," said World of Good co-founder and CEO Priya Haji.
Terms of the deal were not disclosed.
The deal likely will give eBay a stronger position against smaller but growing online sites that sells arts and crafts products, according to Lazard Capital Markets. “We believe the acquisition provides eBay with a competitive offering to emerging marketplaces such as Etsy,” the research firm said in a note Friday. Etsy enables artisans to sell their products directly to consumers, with Etsy taking a cut of the sale as well as charging a fee for listings.