eBay has confirmed rumors that it is selling its enterprise services business. eBay Enterprise, which helps retailers develop and manage e-commerce sites as an extension of their real-world business, is fetching $925 million from a consortium of sellers led by private equity firm Permira.
Other members of the consortium include US-based private equity firm Sterling Partners, Europe-based asset management company Longview Asset Management, US-based e-commerce fulfillment company Innotrac and a collection of undisclosed companies under the Permira arm.
The $925 million selling price may seem like a lot but in reality, eBay is taking a hit on the venture. The company came into the enterprise arm through its acquisition of GSI Commerce in 2011. eBay paid $2.4 billion at the time and rebranded the business as eBay Enterprise two years later. Doing some quick math, eBay is selling the division for nearly $1.5 billion less than it paid just four years ago.
In a bit of irony, consortium member Innotrac attempted to merge with GSI Commerce in 2009. The deal ultimately fell through before it was finalized, however.
Word of the deal comes just a day before eBay and PayPal officially split. Starting next week, PayPal will be traded as an independent company on the Nasdaq.
eBay said it expects to close the deal with Permira sometime next year.