Pitney Bowes makes $395m offer for cross-border shipping specialist Borderfree
Mailing and shipping giant Pitney Bowes has signed a definitive agreement to buy cross-border shipping specialist Borderfree for $395m. Pitney Bowes, the world’s largest mailing solutions provider, said the acquisition would accelerate its expansion into digital commerce.
The Connecticut-based company has made an offer of $14 per shares for Borderfree, which helps e-commerce retailers ship to customers in other countries.
It works with brands including J.Crew, Land’s End, Neiman Marcus, Macys, Bloomingdale’s and OshKosh B’gosh.
Borderfree made $125m in revenue in 2014 with 253 employees working out of its New York headquarters and offices in Tel Aviv, Israel, Dublin and in Brighton, England.
The company started out in 1999, and was called FiftyOne Global Ecommerce before acquiring Canada Post’s US-Canada cross-border shipping business Borderfree in 2012, when the whole company then took on the Borderfree name.
“Opportunity”
Marc Lautenbach, the president and chief executive at Pitney Bowes, said acquiring the firm “makes sense for our clients” as well as accelerating the current strategy.
“The combination of Borderfree’s cross-border ecommerce capabilities with our own solutions expands our portfolio of offerings and extends our global reach,” he said.
“We’ve had a long-standing relationship with Borderfree and know the company well. Together, we have a significant opportunity to help our clients expand and grow by providing a comprehensive range of complementary, cross-border ecommerce solutions in the fast-growing global ecommerce marketplace.”
Pitney Bowes said it expected the acquisition to close in the second quarter of 2015, subject to the required approval of a majority of Borderfree’s shareholders.
Borderfree chief executive Michael DeSimone said his company was excited to join Pitney Bowes.
He said: “Pitney Bowes’ technology, commerce and logistics expertise will help accelerate our growth and the ability for our combined businesses to realize our full potential as a leader in the dynamic global e-commerce market.”
