Shares of eBay Inc. are up more than 4 percent following the company’s announcement that it has sold its eBay Enterprise platform for approximately $925 million. The news came during eBay’s second-quarter conference call today.
The e-commerce behemoth’s enterprise arm — which supports the online retail sites of other businesses — was sold to a consortium led by private equity firm Permira and Sterling Partners.
The move comes just a day ahead of a planned split from PayPal, on July 17, as eBay continues to streamline its operations.
The auction site has been under increased pressure lately to shed what some investors and market watchers have viewed as potentially distracting divisions of its business.
“I am proud of what we’ve accomplished: building two global leaders in commerce and payments,” said John Donahoe, eBay Inc.’s CEO, president and director, on the conference call. “Launching PayPal and eBay as independent companies is clearly the best path for each business and the right approach for delivering sustainable value to shareholders.”
Today, the firm posted revenues for the second quarter, ended June 30, 2015, of $4.4 billion, excluding $0.3 billion of eBay Enterprise revenue that is now presented as discontinued operations. Income from continuing operations was $682 million, or 56 cents per diluted share.
Analysts polled by Yahoo Finance had predicted revenues of $4.5 billion and earnings per share of 73 cents.
The consortium of buyers also includes Longview Asset Management, Innotrac Corp. and companies owned by Permira funds.
Four divisions make up eBay Enterprise: Magento Commerce Technologies, eBay Marketing Solutions, Enterprise Services and Enterprise Operations.
The transaction is expected to close in the second half of 2015.