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Permira and Sterling Partners lead $925m buy of eBay unit

Private equity pair team up with asset manager Longview and Sterling portfolio company Innotrac in agreement to acquire eBay e-commerce unit

A consortium of Permira and Sterling Partners with Longview Asset Management and e-commerce company Innotrac, a Sterling Partners portfolio company, and companies owned by Permira funds have agreed to acquire eBay's logistics services business for $925 million, according to a statement.

Buyout firm Permira made the investment from its fifth fund, a €5.3 billion, 2014 vintage vehicle that is over 50% invested, it is understood.

Morgan Stanley and Credit Suisse provided debt for the leveraged acquisition that is expected to close in the second half of 2015.

The acquisition of eBay Enterprise includes retail focused e-commerce businesses Magento Commerce Technologies, eBay Marketing Solutions, Enterprise Services, and Operations.

Formerly known as GSI Commerce, eBay acquired the e-commerce company four years ago for $2.4 billion. The sale was announced on the eve of the online auction company’s split from PayPal.

Officials from Permira declined to comment while Sterling did not return calls by press time, and Longview officials were unavailable.

Innotrac, a company which Sterling acquired in January 2014, provides e-commerce services to apparel retailers like J. Crew, and Zara.

For Sterling Partners, which invests in business services, education and healthcare, the deal follows the launch of its $200 million Education Opportunity Fund in April.

The firm closed Fund IV, a $650 million vehicle, in 2013.