Ebay Inc. completed the previously announced sale of Ebay Enterprise to a consortium consisting of Sterling Partners, Longview Asset Management, and the Innotrac Corporation, a Sterling Partners portfolio company, together in partnership with companies owned by the Permira Funds for $925 million.
The consortium of buyers has separated Ebay Enterprise into four distinct businesses:
- Enterprise Operations & Enterprise Technology Services is owned by Sterling Partners.
- The Magento Commerce Technologies business is owned by the Permira Funds.
- The Marketing Solutions business is owned by the Permira Funds.
- The CRM business is owned by the Permira Funds.
According to its new website, www.ebayenterprise.com, Enterprise Operations & Enterprise Technology Services clients include: Dick's Sporting Goods, Eastern Mountain Sports, Fanatics, Helly Hanson, MLB, NBA, NFL, Quiksilver, Orvis, Sports Authority, DSW, Shoe Carnival, Speedo and Timberland.
In a separate statement, Sterling Partners, a private equity firm, together with Longview Asset Management, announced the formation of a standalone Omni-Channel Commerce Operations company. The former enterprise services division of Ebay Enterprise will be integrated with operations of Innotrac Corporation, a Sterling portfolio company, to become one of the world's leading independent Omni-Channel Commerce providers.
The combined operations portions of Ebay Enterprise and Innotrac will be a focused leader in technology-led ecommerce solutions. Together, it will have more than 7,500 employees, operate 27 distribution centers and six customer service sites across North America and Europe, and offer leading platforms in the areas of omni-channel ship from store, software, order management, payments, tax, and fraud solutions globally.
The operations portions of Ebay Enterprise and Innotrac will be integrated starting after the 2015 holiday season, and the company will be re-branded in 2016. Tobias Hartmann will serve as the president of the new company. Hartmann has 20 years of experience in retail, e-commerce, and logistics in the U.S. and Europe and was previously the vice president and general manager of the enterprise services division of Ebay Enterprise.
“With the support of Sterling Partners and the integration of Innotrac, we will be a leading independent player in the industry. We'll use our scale, technology, and expertise to benefit our clients and ensure they continue to win for their customers,” said Hartmann. “We are fortunate to join forces with Innotrac, as it enables us to bring together our organizations and collective assets to create a world-class service provider.”
“The combination of Ebay Enterprise and Innotrac affords exciting opportunities for our clients and employees in the rapidly expanding ecommerce market,” said Scott Dorfman, founder of Innotrac, who will be a shareholder in the combined company and also on its board of directors. “It allows us to continue to hone our focus on delivering forward-thinking solutions and superior service, while increasing the value proposition for clients.”
“The e-commerce services market has evolved rapidly over the last several years with tremendous growth and success of the clients served by both Ebay Enterprise and Innotrac,” said Todd Miller, principal at Sterling Partners. “We are confident that this new standalone organization, with industry leading capabilities, technology, and scale, is poised to provide the omni-channel industry with focused and superior solutions to enhance its clients' branded customer experience.”