eBay to Buy Online Payment Services Startup Braintree for $800 Million
Braintree, the company that helps startups like Airbnb, LivingSocial, GitHub and Uber process online credit card payments, has been acquired by eBay in a cash deal valued at $800 million. The internet auction company said it plans to combine the talent from its just-acquired merchant account services provider with its ubiquitous PayPal payment offerings to "accelerate PayPal's global leadership in mobile payments."
In a statement, eBay said Braintree would continue to run as a separate service, within PayPal, under Bill Ready, Braintree's chief executive. Ready's new boss will be PayPal president David Marcus, and eBay said the Braintree team is "expected to stay in place."
Braintree processes $12 billion in payments annually, with more than one third of that coming from mobile. Before the deal, the company had reportedly also been in acquisition talks with mobile payments company Square.
The Chicago-based Braintree also operates Venmo, a mobile app that leverages social media to let users pay each other directly. Venmo was acquired by Braintree last year for more than $26 million.
"The alignment with PayPal means Braintree can continue to push the boundaries of innovation while expanding into new markets with increased speed and confidence," Ready says.
The deal is expected to close late this year.