eBay said Monday it will acquire Internet payment service PayPal in an effort to simplify online buying and selling.
The online auction company will swap 0.39 share of its stock for each outstanding share of PayPal. Based on eBay's price Friday, the acquisition is valued at $1.5 billion.
Following the deal, PayPal will continue to operate independently. About 60 percent of PayPal's business currently comes from eBay, and eBay said it will phase out its Billpoint pay system when the PayPal acquisition becomes final.
The deal, which is subject to shareholder and government approval, is scheduled to be completed by the end of 2002.