eBay buys GSI Commerce: What’s it mean for Eau Claire?

V1 Staff |

Yes, Micheal Rubin, CEO of GSI Commerce (left), was in an episode of “Undercover Boss.” The experience taught him a lot.
 
Yes, Micheal Rubin, CEO of GSI Commerce (left), was in an episode of Undercover Boss.
According to our sources, the experience taught him a lot.

Anyone out there work at GSI Commerce in Eau Claire? Well, GSI – a company specializing in developing and running online shopping sites for brick and mortar retailers – just done got itself bought by an internet startup called “eBay” (internet hyperlink) for about $2.4 billion. Give or take.

GSI is based out of Pennsylvania, but one of the company’s four “Customer Care” call centers is over on International Drive in Eau Claire. Do you speak Financial? If so, from Forbes.com:

In a major shift in business strategy, eBay (EBAY) this morning announced a deal to acquire the e-commerce services provider GSI Commerce (GSIC) for $29.25 a share in cash for $2.4 billion. The deal is expected to close in the third quarter.

The deal comes at a 51% premium to GSIC’s closing price on Friday.

eBay said it will finance the deal with a combination of cash and debt.

“We intend to lead the next generation of commerce innovation,” CEO John Donahoe said in a statement. “The acquisition of GSI, which offers the most comprehensive integrated suite of online commerce and interactive marketing services available, will significantly strengthen our ability to connect buyers and sellers worldwide.”

GSI Commerce provides services to more than 180 retail customers.

eBay’s acquisition of GSI could impact Eau Claire, as our local call center handles customer service calls, orders, and distribution for all the "partners" of GSI, including sporting goods retail partners, Petsmart, and Toys ’R‘ Us. No one knows yet, but if the demand on GSI’s current call centers was to decline, that may affect local workers.

For example, as part of the deal, GSI’s CEO (Michael Rubin) is heading up a holding company to retain some of GSI’s current partners. But it doesn't look like Toys ’R‘ Us – their largest partner – is one of them. We hear that about one third of the employees in the Eau Claire call center exclusively handle Toys ’R‘ Us customer service, so the loss of this account would undoubtedly affect them, and possibly cause a huge decline in seasonal hiring.