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EBay Inc. today announced it will acquire online-payments company Bill Me Later Inc. for approximately $820 million. EBay expects to close the deal this quarter. EBay anticipates Bill Me Later, which enables consumers to get credit toward online purchases so they can pay later, will generate an estimated $150 million in revenue in 2009. EBay also owns PayPal, an online-payment service that enables consumers to pay directly from their debit or credit card accounts without having to enter the information online. "PayPal and Bill Me Later have a similar vision to dramatically streamline and improve the experience for customers shopping online," Gary Marino, Bill Me Later CEO, said in a statement. "This deal helps us to accelerate that vision by offering our products to millions of customers who already use eBay and PayPal." Aite Group analyst, Adil Moussa says PayPal's Pay Later option could not compete with Bill Me Later, so it made sense for eBay to buy the company. "This certainly speaks to the incredible solution that Bill Me Later was able to build over the last 4 years," he says. "They succeeded in signing up large merchants, developing name recognition, attracting the right consumer base, and offering a solid alternative payment solution to credit and debit cards."
