Ebay to Acquire Open Source E-Commerce Platform Magento
Monday, June 06, 2021 2:04 PM

EBay Inc. (Nasdaq: EBAY) has agreed to acquire Magento Inc., the creator of Magento, a leading open source ecommerce platform. The deal follows eBay’s acquisition of a minority stake in the company in 2010. Upon closing of the transaction, eBay will own 100 percent of the outstanding shares of Magento. EBay did not disclose the terms of the deal.

“Technology-driven innovation is blurring the lines between online and offline commerce, changing the way consumers shop, and enabling retailers of all sizes to benefit from the latest innovations from the developer community,” said John Donahoe, president and chief executive officer, eBay Inc. “The feedback we’ve heard from external developers has been clear — they don't just want payments or an ecommerce site; they want access to a full set of commerce capabilities to build complete shopping experiences for merchants. We believe the acquisition of Magento and creation of our X.Commerce group will enable us to meet developers’ needs and drive global commerce innovation for retailers and consumers.”

The deal is the latest in a string of acquisitions for eBay this year. In April it bought local advertising company Where, and in March it said it would buy e-commerce service provider GSI Commerce Inc. (Nasdaq: GSIC) for $2 billion.

EBay does not expect the acquisition of Magento to have a material impact on its financial guidance as issued in conjunction with its first quarter earnings release on April 27, 2011. The transaction is expected to close in the third quarter of 2011, after meeting customary conditions and regulatory approval.