EBay on Monday announced plans to buy e-commerce company GSI Commerce for $2.4 billion.
The move will help it better compete against traditional e-commerce sites like Amazon as eBay moves away from its online auction roots.
"We intend to lead the next generation of commerce innovation. 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," John Donahoe, eBay president and CEO, said in a statement. "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 combination of eBay, PayPal, and GSI will create "new ways for retailers and brands of all sizes – from sole proprietors to large merchants – to drive innovation, engage customers and help people shop anytime, anywhere and on any device," Donahoe said.
As part of the deal, eBay will sell off 100 percent of GSI's licensed sports merchandise business and 70 percent its ShopRunner and Rue La La business because "these businesses are not core to its long-term growth strategy," eBay said.
"These assets will be sold to a newly formed holding company, which will be led by GSI founder and CEO Michael Rubin," according to eBay.
EBay will loan that holding company $467 million and retain a 30 percent stake in Rue La La and ShopRunner.
EBay said the deal is expected to close in the third quarter.
In December, eBay acquired online German shopping club brands4friends for about $200 million.