eBay is to acquire PayPal, the world's biggest web micropayments platform, in a $1.5 billion all stock deal. The purchase price includes $18 million in acquisition related costs. The formalities of the deal are expected to be complete by the end of this year. PayPal shareholders will receive 0.39 eBay shares for each PayPal share. The offer values each PayPal share at $23.61.
PayPal only went public in February this year. The company will continue to offer its services as independent brand following the completion of the acquisition.
eBay has announced that it will withdraw its eBay Payments by Billpoint service after the deal is completed. The service was formerly in direct competition with PayPal’s service offerings.
