eBay is in the process of acquiring Braintree, an innovative global payment platform powering online and mobile-first startups, for approximately $800 million in cash.
“Braintree is a perfect fit with PayPal,” said eBay Inc. president and CEO John Donahoe. “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.
“PayPal was built on helping entrepreneurs grow great businesses online. I’m thrilled to welcome the Braintree team,” said Marcus. “With this deal I believe that we will accelerate our capabilities for developers, entrepreneurs, merchants and companies that are building the future.”
“The alignment with PayPal means Braintree can continue to push the boundaries of innovation while expanding into new markets with increased speed and confidence,” said Ready. “Our current customers and developer community can expect the same level of support and partnership they’ve always enjoyed, coupled with more resources.”
Venmo, Braintree’s mobile application, is part of the acquisition and will help to contribute to PayPal’s mobile payments capabilities. The application gives people an easy way to pay each other using their mobile devices and leveraging social networks, according to the companies. 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. Assuming PayPal’s acquisition of Braintree closes in late 2013, eBay anticipates an immaterial impact to PayPal’s 2013 net total payment volume.