EBay buys e-commerce platform provider Magento
EBay has agreed to acquire Magento, an e-commerce software platform provider. San Jose, Calif.-based eBay also said June 6 that it will create an “X.Commerce” group to use its own assets and partner technologies to build a stronger developer community.
“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,” said John Donahoe, president and CEO of eBay, in a statement.
EBay bought a minority stake in Los Angeles-based Magento in 2010 for $22.5 million, according to several media reports. Magento has more than 290 employees.
“The feedback we've heard from external developers has been clear,” said Donahoe, in a statement. “They don't just want payments or an e-commerce site; they want access to a full set of commerce capabilities to build complete shopping experiences for merchants.”
EBay reported a revenue increase of 16% to $2.5 billion in the first quarter, compared with Q1 of 2010. The company also bought location-based service Where and interactive marketing services provider GSI Commerce in the first quarter.
Financial terms of the Magento deal, which is expected to close in the third quarter, were not disclosed.
EBay did not respond to calls seeking comment on the acquisition.