EBay Inc said it would buy Where, a company that delivers local advertising to mobile phones, in its latest push to allow more retailers to do business with customers through its services.
EBay did not disclose the terms of the deal, announced in a blog post on Wednesday on its website, but expects it to close in the second quarter of 2011.
The company said that the purchase should not affect the results forecast it gave last month.
EBay, which owns PayPal as well as its online auction site, said the deal would enhance its ability to connect retailers and shoppers.
PayPal, which has led eBay's revenue growth in recent years, would also benefit when shoppers paid for offers they get from Where's clients by using the payment system, eBay said.
Where's clients include some 120,000 businesses, eBay said.
In March, eBay said it would buy e-commerce service provider GSI Commerce Inc for $2 billion, a deal seen as a way to take on No. 1 Web retailer Amazon.com Inc.
EBay shares were up 2.8 percent to $32.01 in morning trading.