eBay to sell Enterprise unit for USD as it officially waives goodbye to PayPal

The division, which helps power the online stores for retailers and brands, will be acquired by a group of investment entities including the private equity firms Sterling Partners and Permira, recode.net reports.

eBay has succeeded in finding a resolution for Enterprise before the spinoff, something it has talked about since January, 2015. eBay acquired Enterprise, formerly known as GSI Commerce, for USD 2.4 billion — or almost three times the current sale price — in 2011. At the time, eBay spun off the majority or entire stakes of parts of GSI, including flash sale website Rue La La and the online sports retailer Fanatics.

What it was left with was a business that sells ecommerce and logistics services to midsize and large retailers. While parts of the business like the Magento software platform still hold promise, the business also faces challenges as some big long-term clients such as Toys “R” Us decide to leave the GSI platform.

The combined entity of eBay, eBay Enterprise and PayPal have just reported the Q2, 2015 financial results with more than USD 4.6 billion, beating analyst estimates of just under USD 4.5 billion. Earnings per share for the combined entities, excluding some items, was USD 0. 76, beating estimates of USD 0.72. The stock was up more than 3% in pre-market trading.