EBay Inc. will acquire PayPal Inc., a payments platform, for an estimated $1.5 billion.
The deal is expected to close around the end of the year. “Payment is a vital function in trading on eBay and integrating PayPal’s functionality into the eBay platform will fundamentally strengthen the user experience and allow buyers and sellers to trade with greater ease, speed and safety,” the firms said in a statement.
PayPal, which enables businesses and consumers with e-mail to send and receive Internet payments, will continue to operate as an independent brand. About 60% of the firm’s business takes place on eBay. The remaining 40% is among small merchants.
San Jose, CA-based EBay has 46 million worldwide users. It expects to report net revenue for the second quarter ended June 30 of $266 million. PayPal, Mountain View, CA, said it expected revenues for the same period of between $53 million and $54 million.
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