eBay Enterprise Spun Off and Broken Up
The new owners paid $925 million and have separated the unit into four distinct businesses:
- Enterprise Operations & Enterprise Technology Services is owned by Sterling Partners.
- The Magento Commerce Technologies business is owned by the Permira Funds.
- The Marketing Solutions business is owned by the Permira Funds.
- The CRM business is owned by the Permira Funds.
Mark Lavelle, formerly senior vice president at eBay Enterprise, will lead Magento Commerce Technologies as its new CEO. The flagship open-source Magento platform powers over 240,000 sites globally and supports over $50 billion in gross merchandise volume annually.
Lavelle said, "During our time as a division of eBay, Inc., we grew revenue fivefold, made significant investments in our core platform and added innovative mobile and omnichannel products. Now, we will build on this momentum - continuing to innovate with speed and at scale while we put renewed focus on expanding our market leadership with stronger emphasis on our global network of system integrators, technology partners and developer community."
Sterling Partners, a growth-oriented private equity firm, together with Longview Asset Management, announced that the former enterprise services division of eBay Enterprise will be integrated with operations of Innotrac Corporation, a Sterling portfolio company, "to become one of the world's leading independent Omni-Channel Commerce providers."
eBay had acquired GSI Commerce in 2011 for $2.4 billion, and it acquired Magento in 2012 for an undisclosed amount.