eBay has agreed to acquire Braintree, a global payment company, for approximately $800 million in cash.
Braintree will join eBay’s PayPal business unit, accelerating innovation in mobile payments. It will help Braintree expand into new markets with increased speed and confidence.
The payment platform from Braintree 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 complete, 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, the company said.
Braintree’s management team and employees are expected to stay in place.
“Braintree is a perfect fit with PayPal,” said eBay 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,” Donahoe added.
“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 Braintree CEO Bill 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 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.