MUMBAI: Baazee was one of the few Indian companies to have survived the dotcom bust. Its founders are about to strike pay dirt. Online marketplace eBay has announced an agreement to acquire market portal Baazee.com, and its subsidiary Baazee.com India.

This claims to be the largest online marketplace in India. The acquisition is expected to close in the third quarter of the year.

The agreement will allow eBay to expand its global footprint into the Indian market. In turn, Baazee.com will use its new relationship with eBay to further develop its business and strengthen its position in our e-commerce market. eBay will acquire all outstanding shares of Baazee.com. for around $50 million, plus acquisition costs and post-signing adjustments.

The combination of Baazee.com and eBay will allow buyers and sellers in India and around the world to gain access to a broader range of choice and convenience. The Mumbai based Baazee.com offers a diverse online marketplace for a range of buyers and sellers throughout India. Baazee.com currently has more than one million confirmed registered users who trade in a wide range of categories from consumer electronics and computers, to home decor and jewelry.

eBay president and CEO Meg Whitman added," Although it's early days for e-commerce in India, we believe there is great opportunity over the long term. Baazee.com's strong management team and solid focus on its community make it a natural fit with eBay."

A young e-commerce market our internet penetration while nowhere close to the US is said to grow steadily. There are currently 17 million Internet users in India, and that number is expected to grow to more than 30 million in 2006.