E-commerce service provider eBay has completed the acquisition of Braintree, a Chicago-based mobile payment processor company, for $800 million in cash. This deal was announced earlier in September.
Braintree will now operate as a separate service within PayPal, which is one of eBay’s fastest-growing businesses, accounting for almost half of eBay’s annual revenues.
The new division will be led by Braintree CEO, Bill Ready, who will report directly to PayPal President, David Marcus.
Management projects that the acquisition will lower eBay’s 2013 pro forma earnings by 1 cent without affecting its revenues.
Marcus said PayPal would continue to support Braintree’s Venmo service and would look to Braintree’s engineers" to help us quicken the pace of progress and innovation in our far-ranging efforts in mobile payments.
Braintree plans to begin offering PayPal as a payment option to its merchant customers in 2014, and Marcus noted that Uber is the first Braintree merchant to integrate the new PayPal Mobile SDK.