eBay Closes $945 Million Deal for Bill Me Later

Authored by Mark Hefflinger on November 7, 2008 - 10:24am.

San Jose, Calif. - eBay (NASD: EBAY), the online auction giant, said on Friday that it has completed its $945 million acquisition of Bill Me Later, developer of a service that allows customers to pay for their online purchases without using a credit card.

Terms of the deal included $820 million in cash, as well as $125 million worth of outstanding options.

eBay said that it plans to combine the company with its existing online payments arm, PayPal.

Founded in 2000 under its previous name I4 Commerce, Bill Me Later's service lets shoppers provide their birth date and last four digits of their social security number to either a website or call center, and later receive a bill in the mail.

Its clients include AirTran, Apple, Borders, Toshiba, Toys "R" Us, US Airways, and Walmart.com.

Gary Marino, the CEO of Bill Me Later, will continue to lead the business.