Bill Me Later, the online payment business, has agreed to an offer from online auctioneers eBay for $945 million. eBay will pay $820 million in cash to acquire the company’s capital stock and warrants plus $125 million to assume Bill Me Later’s outstanding employee stock options.

Mark Lavelle, vice president of corporate development and strategy for Bill Me Later, said in an interview that he expects the company to combine its service with PayPal, using it as an alternative mode of payment along with credit cards and checking accounts. “We see this as a move that allows us to take Bill Me Later to a global scale,” he said.

Bill Me Later CEO Gary Marino will continue to run the company as a business unit of PayPal, according to the release announcing the deal

The deal is expected to be signed by the end of the year.

Posted: 10|7|08 at 2:22 pm. Filed under: Auction News.