Rakuten to acquire Ebates for $1 billion in cash
The company will acquire Ebates for a total consideration of $1 billion in cash, and will hold 100% of Ebates outstanding voting stock.
Ebates, founded in 1999, is a pioneer and major provider of a membership-based online cash-back site and offers a robust platform that drives e-Commerce for retailers. Ebates has over 2,600 enterprises across a variety of retail formats and product genres in its network, including major e-Commerce sites, other retailers with significant e-Commerce operations, and online travel agencies.
It also has 2.5 million loyal active members with increasing shopping activity per member. In FY2013, Ebates generated $2.2 billion of gross merchandise value (GMV), net revenue of $167.4 million, and operating income of $13.7 million.
Since the acquisition of LinkShare in 2005, Rakuten Group has successfully expanded businesses in e-Commerce, advertising and related areas through long-standing mutual respect with Ebates. It is a natural fit for the Company to acquire a key player like Ebates, in order to develop a unique and innovative e-Commerce platform, by integrating our existing business assets and technologies of the Rakuten Group with Ebates.
Before the transaction, the aggregated total ownership of such shareholders is approximately 77%. The acquisition of the remaining ownership by the other existing shareholders including employees of Ebates is planned simultaneously. ■