eBay pays £1.2bn for GSI Commerce

The auction website eBay is to buy the e-commerce company GSI Commerce for $1.96bn (£1.22bn) in cash in an attempt to win more business from large store chains.

GSI, which is listed in the US on the Nasdaq exchange, owns web businesses such as Rue La La, which offers one-day-only web deals to members, and ShopRunner, a members-only shopping service that offers free postage.

It also provides retailers with technology, payment processing and customer care services for their internet shopping sites.