AUSTRALIAN financial services giant E-trade is seeking to raise more than $1.3 billion to buy a majority stake in the digital platforms that make up the backbone of the electronic commerce industry.
The acquisition would enable the company to take on some of the bigger players in the market, such as eBay, Amazon and Microsoft.
It would also enable the group to increase its share of the market and provide a level playing field for other digital platforms.
E-trade chief executive David Schumacher said the deal would be the most significant digital deal for the company in recent times.
“The growth of e-business is a global phenomenon and the scale and diversity of the marketplace is becoming increasingly competitive,” Mr Schumachers said.
“As more and more of our customers and businesses adopt digital technology, it is imperative that we provide a platform that meets their unique needs and delivers value to their business and communities.”
He said it was important to understand that while the acquisition would give E-Trade a competitive advantage, it would also help the company grow and become more efficient in its business.
“We will be able to provide a better experience for our customers, as well as more opportunities for growth,” Mr Shumacher told reporters in Melbourne.
“It will be an asset for our organisation and a great asset for the economy.”
Mr Schumach said the acquisition was part of the broader strategic plan to expand the company into new markets around the world.
“This transaction will enable us to take our company to new markets and build on our strengths in Europe and Latin America,” he said.
The group will continue to operate a wholly owned subsidiary E-commerce, with operations in Australia, New Zealand, the US and Brazil.
It will also become an arm of the e-payment service provider MasterCard and is likely to add new services including its mobile payment service.
In November, E-traders were left stunned as MasterCard announced it would no longer provide E-Traders with access to the electronic payments system.
Topics:electronic-technology,business-economics-and-finance,technology,finance-and-$,financial-markets,business,australia,melbourne-3000,vic,vicnews-2484,vicNews-Events,financial,federal—state-issues,business/economy-and_government,aurnabe-5060,vicMore stories from Victoria