Today in Philly Tech History 3/28/2011: eBay announces it will acquire GSI Commerce for $2.4 billion
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On March 28, 2012, eBay announced it would acquire King of Prussia-based ecommerce company GSI Commerce for $2.4 billion, or $29.25 per share.
As part of the deal, eBay agreed to spin off 100% of GSI Commerce's sports licensing business and 70% of flash sales site Rue La La and delivery service ShopRunner, into a newly formed holding company to be led by GSI Commerce founder and CEO Michael Rubin, later to be named Kynetic LLC and based in Conshohocken. eBay also agreed to loan Rubin's new company $467 million.
In an interesting move, First Round Capital's Josh Kopelman, a former eBay executive for a period after it acquired his company Half.com, joined GSI Commerce's board less than two months before the deal was announced.
At eBay's analyst day this past week, the company indicated its expectation for GSI Commerce was for its revenue to grow at about a 14% annual rate to between $1.5 and $1.7 billion in 2015, with a direct segment profit margin of 16 to 18%.