Multinational e-commerce company eBay is selling its enterprise unit to Permira, a private-equity firm, for $925 million. It was reported that the companies were finalizing the deal, Wednesday.
It was reported that the announcement could be made as soon as Thursday, which is also the day the company's second-quarter financial result is scheduled to be released.
The deal was made before PayPal Holdings Inc.'s separation from the E-commerce company, according to RTT News.
The enterprise was formerly known as GSI Commerce. It was purchased for $2.4 billion in 2011, and it helped retailers strengthen their online and e-commerce capacities.
Toys "R" Us, Inc., one of the largest customers of eBay, launched its own online platform so it ended its almost 10-year contract with the company. Because of this, the enterprise unit "suffered a blow."
Permira funds own the Permira-led association of buyers, which include Innotrac Corp and companies, Longview Asset Management and Sterling Partners.
PayPal will begin its separate trading on the Nasdaq, Monday. Analysts say that it will create a new company worth $40 billion, shrinking the stock market value of the California-based company from over $75 billion to $30 billion.
eBay's market business expanded only by 6.4 percent to $8.8 billion in the global e-commerce market. According to CNBC, Amazon grew more than three times of their [eBay's] rate.
In addition, the company faced an untimely problem in the middle of 2014 when a cyber attack hit the company, forcing to tell 145 million users to change their passwords. More so, its result in search traffic was pushed down due to a change in Google's algorithm.
Despite those dilemmas, eBay's top investors are still on board.
Gil Luria, an analyst from Wedbush Securities, told Reuters that the company was a profitable business, even though it may not grow as fast as PayPal.
He and the other analysts are confident of eBay's prospect as an individual company.
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