Yesterday eBay.Inc announced that it has agreed to acquire Braintree, the innovative global payment platform powering the next generation of leading online and mobile-first startups, for total consideration of approximately $800 million in cash.
Commenting on this, eBay Inc. President and CEO John Donahoe said,”Braintree is a perfect fit with PayPal. Bill Ready and his team add complementary talent and technology that we believe will help accelerate PayPal’s global leadership in mobile payments. Together, we expect that PayPal and Braintree also will accelerate our leadership in supporting developers who are creating innovative solutions for next generation commerce startups.”
Braintree’s payment platform powers next generation innovators such as Airbnb, OpenTable, TaskRabbit and Uber, which are creating compelling new consumer experiences and disrupting legacy business models. Once the acquisition is completed, Braintree will continue to operate as a separate service within PayPal under the continued leadership of Braintree CEO Bill Ready, who will report to PayPal President David Marcus. Braintree’s management team and employees are expected to stay in place.
Venmo, Braintree’s mobile application that gives people an easy way to pay each other using their mobile devices and leveraging social networks, is part of the acquisition and will help to contribute to PayPal’s mobile payments capabilities. PayPal already has a strong presence in mobile, projecting mobile payment volume of more than $20 billion this year.
The transaction is subject to customary closing conditions, including regulatory approvals, and is expected to close late in the fourth quarter of 2013.