EBay flogs digital marketing unit

Ebay flogs digital marketing unitEBay Enterprise, the division which advises over 500 brands on optimising their digital marketing strategies, is being sold off half price to a group of the private equity firms, including one also bidding for DunnHumby.
The $925m (£591m) deal will give control of eBay Enterprise to a group of private equity firms led by Sterling Partners and Permira Funds, which is also bidding for Tesco’s data division.
EBay acquired the division, then called GSI Commerce, in June 2011, for $2.4bn (£1.54bn). The unit’s customers include Levi’s, DKNY, Timberland, Speedo, Toys R Us, Mattel, Early Learning Centre and Sony.
It also recently retained British Airways’ email marketing account. The division handles all of the airline’s email communications with customers, providing customised content based on real-time insights.
The sale of eBay Enterprise was prompted by “increasingly divergent business opportunities” between the enterprise unit and the rest of eBay, the company said.
GSI was founded in 1995 as a sporting goods seller and branched out into e-commerce in the 2000s.
EBay expects the all-cash deal to be completed in the second half of this year, and eBay Enterprise to be renamed by early 2016.

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