The online auction site said on Thursday that it’s selling eBay Enterprise—the arm of its business that helps handle e-commerce and logistics for the likes of Ikea and Timberland—for $925 million.
The buyer is a consortium comprising private equity firm Sterling Partners, European company Longview Asset Management and U.S.-based e-commerce fulfillment company Innotrac, as well as undisclosed companies owned by Permira Funds. EBay first said it was exploring a sale or IPO for the unit back in January.
While the transaction allows the Internet giant to focus on its core digital marketplace, it’s nearly $1.5 billion less than what it paid for the enterprise solution in 2011, when it forked over $2.4 billion for what was then called GSI Commerce.
The timing of the announcement comes on the eve of online payments platform PayPal officially separating from eBay to start trading publicly on the Nasdaq on Monday under the PYPL ticker.