E-commerce giant EBay has agreed to acquire Braintree, a Chicago-based payments start-up, for $800 million in cash.
Braintree also owns a popular payment app, “Venmo” that lets consumers make payments on smartphones and tablets.
Braintree projects $12 billion in 2013 payments for clients — currently powers payments for companies like Rovio, Uber, OpenTable, Fab, Airbnb, TaskRabbit and Heroku.
The online payments platform Braintree was founded in 2007 by Bryan Johnson, a University of Chicago Booth School of Business graduate.
Braintree will continue to operate as a separate service within PayPal led by Braintree’s Chief Executive Bill Ready, EBay said.
Braintree’s roughly 200 employees are staying with the company. EBay recently acquired Svpply, a social shopping site; and Hunch, a recommendation engine.
David Marcus, the president of PayPal, said that “Braintree’s international reach impressed him, and the fact that the company was a good fit culturally. He said that Braintree would remain in Chicago and Venmo in New York, but the companies would collaborate to continue to find ways to “build a payments operating system that others can innovate on top of.”
➤ eBay Inc. to Acquire Global Payments Innovator Braintree [Business Wire] | Braintree