EBay plans to buy e-commerce company GSI Commerce for USD1.96 billion in cash in a bid to draw more buyers and sellers to its online marketplaces.

GSI owns web businesses such as Rue La La, which offers one-day-only deals to its members, and ShopRunner, a members-only online shopping service that offers free shipping. GSI also provides technology, payment processing and customer care services for e-commerce sites.

In a statement, EBay CEO John Donahoe said the deal would help the company connect more buyers and sellers.