Taylor Wessing has advised technology company Shutl, an online marketplace of same day courier companies, on its acquisition by internet giant eBay Inc, in a deal which highlights how attractive early stage technology companies can be for major international brands seeking business solutions.

Shoreditch-based Shutl specialises in delivering local goods within minutes of an online purchase or at a time of the shopper’s choice.  The service operates from most major UK cities and has recently launched in the United States. eBay recently announced plans to increase its footprint in local commerce by expanding its on-demand delivery service eBay Now to 25 cities by the end of 2014.

Simon Walker, partner at Taylor Wessing and lead partner for the deal said: “eBay's acquisition of Shutl is a great example of how a technology company can see an opportunity and develop their offering, to the extent that a company like the size of eBay will buy it.  Shutl has been operating for less than five years, but if you are in the right space, there are opportunities open to technology entrepreneurs who have a proven and relevant product.

Mr Walker says there are some lessons from this deal for other aspiring technology entrepreneurs looking for investors. “Simply developing another clever app is not enough, the product or service must be capable of generating revenue and/or enhancing a product or service. As well as having a great, tried and tested product, the other key ingredient is a well-respected team. Shutl’s business combines a strong management and product development team, with a technology that is already being used by major retailers and has real relevance to commerce and consumers.”

Taylor Wessing has a leading technology M&A practice, with extensive cross-border capabilities, including a network of more than 23 offices worldwide. The M&A practice specialises in corporations looking to do transactions in Europe, particularly in regard to cross-border acquisitions. The practice is particularly well versed in transatlantic deals as demanded by changing industry dynamics across many of the leading commercial sectors.

The transaction was led by Simon Walker with a team including Dan Rooke, Graham Hann, Natasha Mason, Anna McCaffrey, Anna Humphrey, Rob Young and Neil McKnight.