Two Acquisitions in Two Days for eBay as Marketplace Looks Externally to Bolster Focused Categories

Narrow-moat eBay announced its second acquisition in two days, agreeing to purchase myFitment, an online tool that helps ensure product specification alignment for buyers and sellers in the parts and accessories category. The move strikes us as strategically cogent. Although the purchase price was not disclosed, we expect the deal should be comfortably funded with cash and quite a bit smaller than $300 million TCGplayer acquisition announced Aug. 22. In our view, myFitment could directly address what we view as one of two large pain points in expanding e-commerce adoption of auto parts and accessories: bolstering confidence that an order will appropriately meet the customer's needs and fit their vehicle make/model. (Addressing time sensitivity remains a second key pain point to broader adoption.) We maintain our $63 fair value estimate and Standard capital allocation rating for eBay.