eBay has announced it will acquire 100 percent of Magento Inc., a leading open-source e-commerce platform, of which it already owns a minority stake.
According to officials, Magento will continue to serve its customers but will also form part of eBay's new X.Commerce program. This group is meant to build "a strong, robust developer community as a resource for merchants and retailers."
Matthew Mengerick, the head of PayPal's platform team, will head X.Commerce. eBay President and CEO John Donahoe says the new team will help "meet developers' needs and drive global commerce innovation for retailers and consumers."
"The feedback we've heard from external developers has been clear," Donahoe continues. "They don't just want payments or an e-commerce site; they want access to a full set of commerce capabilities to build complete shopping experiences for merchants."
Magento says it agreed to the acquisition to pursue its vision of "being at the core of e-commerce."
"eBay is evolving to become a strategic commerce partner focused on delivering new ways for merchants of all sizes to drive innovation," says Roy Rubin, co-founder and CEO of Magento. "As the centerpiece of this strategy, they are building a global, open commerce platform that leverages the worldwide developer community. And Magento will be at the core of this new, open commerce platform, called 'X.Commerce.'"
Magento, a Los Angeles-based company that employs 290 people, will continue its operations in LA and the Ukraine. eBay acquired 49 percent of Magento in March 2010 for a reported $22.5 million.
More details about X.Commerce will be released at eBay's X.Commerce Innovate Conference in October.
Terms of the acquisition were not disclosed. The deal is expected to close during this year's third quarter.
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Auctiva staff writers constantly monitor trends and best practices of those selling on eBay and elsewhere online. They attend relevant training seminars and trade shows and regularly discuss the market with PowerSellers and other market experts.