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Updated: EBay sells enterprise business to Permira for £592m

EBay has signed a deal to sell its enterprise unit to a consortium led by private equity firm Permira for approximately $925m (£592m), as it prepares to separate from PayPal Holdings.

EBay said in January that it would explore a sale or public offering of its enterprise business, formerly known as GSI Commerce, as it did not fit neatly with its PayPal or marketplace divisions.

The enterprise business helps retailers expand their online presence and ecommerce capabilities.

The sale was announced alongside its second quarter results, when it reported net revenues increased by 7% to $4.3bn (£2.8bn) in the three months ended June 30.

EBay and PayPal are set to separate tomorrow (July 17) and eBay’s board of directors has authorised an additional $1bn (£640m) stock repurchase programme, alongside an existing $2bn (£1.3bn) which was authorised in January.

“We are very pleased with our overall second quarter performance,” said eBay Inc president and chief executive John Donahoe. “PayPal and eBay both delivered strong second quarter results and have strong momentum.

“Dan [Schulman, president of PayPal], Devin [Wenig, president of eBay] and their respective teams are executing well and are prepared to create the next great chapter for PayPal and eBay.”

@Tara_Hounslea

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