EBay boosts marketing with $2.4bn GSI Commerce buy

EBay has agreed to a $2.4bn acqusition of online retail and marketing specialist GCI Commerce.

Pennsylvania-based GSI Commerce provides marketing and e-commerce services for enterprises, and will help to boost eBay's marketing operations.

In particular, the online auction company hopes that the deal will improve the services it offers other online merchants and retailers.

"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 eBay chief executive and president John Donahoe.

"Combined with eBay Marketplaces and PayPal, we believe GSI will enhance our position as the leading strategic global commerce partner of choice for retailers and brands of all sizes."

The company said that the deal, worth $29.25 per share, will close in the third quarter of this year.

Forrester Research analyst Brian Walker suggested that the deal could help eBay cope with a user base that has been eroding at the hands of rival retailers such as Amazon.

"EBay needs to do something, and many things, to become more relevant to the consumer (in their marketplace) and to the marketplace as a whole," Walker wrote in a blog post.

"Becoming a stronger player to larger retailers and consumer brands is an important move."