EBay’s merger and acquisition of Braintree for $800 million is a nice bolt on for Paypal but why not pay $1 billion? After all that seems to be the magic number these days.
In 2011 it was reported that Braintree had $9.9 million in revenues. They are projected to process $12 billion in payments this year and at 2.9% & .30 cents a transaction that is some serious revenues. Assuming they continued to experience 300% a year growth since 2011 they could be brushing up against $90 million in revenues this year putting the revenue multiple a tad over 8x. Likely to be another overpriced transaction, time will tell.