An ecommerce giant eBay plans to purchase Where, a company that provides local advertising to mobile phones.

The terms of the deal were not disclosed by eBay but it said that it expects to close it in the second quarter of 2011. The purchase would not affect the results of the earlier forecast, said the company in a blog post announcement.

eBay believes 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.