EBay To Acquire ECommerce Platform Firm Magento

    DOW JONES NEWSWIRES 

EBay Inc. (EBAY) agreed to acquire the remaining stake in Internet commerce platform company Magento Inc. that it doesn't already own, expanding its portfolio of capabilities that it can offer to online merchants.

Terms of the deal weren't disclosed.

EBay, which expects the deal to close in the third quarter, said at its analyst day in February that it acquired a 49% stake in Magento, an ecommerce platform that enables online sales, last year. That investment was worth $22.5 million, according to a filing Magento made with the Securities and Exchange Commission in March 2010.

EBay last month said it could use some of the $2.4 billion from selling its Skype SARL stake for acquisitions--in particular tools that allow customers to shop, locate goods and compare prices while using their mobile phones.

The company has been under pressure to revive its stalling market-place business which has come under pressure from more user-friendly sites such as Amazon.com Inc. (AMZN).

EBay said its expects the acquisition and its open commerce X.Commerce group will allow it to provide services for merchants and retailers beyond payments and websites. The company said more details would be released during the X.Commerce Innovate conference in October.

Magento's clients include major companies such as Ford Motor Co. (F) and Swatch Group AG (SWGAY, Z.SWG).

EBay shares were down eight cents at $30.22 in recent trading.

-By Tess Stynes, Dow Jones Newswires; 212-416-2481;

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