EBay acquires Indian online marketplace

Online marketplace eBay Inc. announced Wednesday that it has agreed to acquire Baazee.com, an Indian online marketplace and auctioneer.

The agreement will allow San Jose-based eBay to expand its global footprint into the nascent but growing Indian market, the companies said in a statement. The acquisition is expected to close in the third quarter.

New York-based Baazee.com Inc. runs a marketplace and auction site in India through its subsidiary Baazee.com India Pvt. Ltd. in Mumbai. Baazee.com, which started operations in January 2000, currently has more than 1 million confirmed registered users who trade in a wide range of categories from consumer electronics and computers, to home decor and jewelry.

Under the agreement, eBay is acquiring both Baazee.com Inc and its Indian subsidiary. EBay will acquire all outstanding shares of Baazee.com for approximately $50 million, plus acquisition costs and postsigning adjustments.

In a statement, eBay's president and CEO, Meg Whitman, said she sees great opportunity in the Indian market in the long term and called the deal important for the growth of eBay's global marketplace.

A number of multinational companies are scouting in India for possible acquisition targets. Earlier this year, IBM acquired Daksh eServices Pvt. Ltd., a business process outsourcing company in Gurgaon, near Delhi.

Copyright © 2004 IDG Communications, Inc.

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