Pitney Bowes Expands Capabilities in Growing Ecommerce and Parcel Services Space with Acquisition of Newgistics, Inc.
September 06 2017 - 11:26AM
Business Wire
Acquisition augmented by organic expansion of
presort and parcel services for enterprises and SMBs
Pitney Bowes (NYSE:PBI), a global technology company that
provides innovative products and solutions to power commerce, today
announced that it has signed a definitive agreement to acquire
Newgistics, Inc. (Newgistics), an Austin, Texas-based provider of
parcel delivery, returns, fulfillment and digital commerce
solutions for retailers and ecommerce brands. The acquisition will
accelerate Pitney Bowes’ expansion into the U.S. domestic parcels
market at scale, enabling the company to deliver a broader range of
consumer-focused ecommerce and parcel management solutions to
retailers, small and medium businesses, and enterprise clients.
This transaction is consistent with the company’s capital
allocation practice to prioritize investments to optimize long-term
shareholder value.
“Newgistics fits uniquely at the intersection of our parcel
growth strategies and will accelerate the overall transformation of
Pitney Bowes,” said Marc B. Lautenbach, President and Chief
Executive Officer, Pitney Bowes. “This acquisition – combined with
recent innovations in mailing and shipping for SMB clients, organic
growth of our Global Ecommerce business, and expansion of our
presort and parcel services network – definitively anchors Pitney
Bowes in a growing space and vastly increases the value we can
deliver for our clients.”
Under the terms of the definitive agreement, Pitney Bowes will
purchase all shares of the privately held company for approximately
$475 million. The acquisition of Newgistics meets all of the
financial criteria for acquisitions that the Company has previously
presented. The transaction is expected to close by late third or
early fourth quarter subject to customary closing conditions. It is
Pitney Bowes’ intention to continue to operate the businesses as
independent units through the remainder of 2017 and into the first
quarter of 2018 to avoid any disruptions during the busy holiday
shipping season.
Newgistics, best known for its returns-processing capabilities,
provides a range of ecommerce solutions on behalf of nearly 500
retail clients. It is a workshare partner of the United States
Postal Service (USPS®) and processes nearly 100 million parcels
annually, including more than 50 percent of all Parcel Returns
Select packages shipped through the USPS. It’s parcel services and
ecommerce logistics network includes nine operating centers and an
asset-light national transportation network of more than 50
partners.
“We’re excited about joining the Pitney Bowes team,” said Todd
Everett, CEO, Newgistics. “Pitney Bowes is a company that shares
our values – a company we can trust with our reputation, our
clients and our employees. By adding our capabilities, Pitney Bowes
will deliver even more value and a broader range of ecommerce and
shipping solutions to our collective client base.”
Newgistics adds to Pitney Bowes’ growing list of physical and
digital ecommerce and parcel services capabilities, including:
- a national network of Presort Services
Operating Centers, which processes more than 15 billion letters and
parcels annually;
- the industry’s most proven, capable and
scalable end-to-end Global Ecommerce solution that can handle all
facets of enterprise retail cross-border expansion; and
- a nearly 100-year old relationship with
the USPS, including the USPS’s largest national workshare
partnership and technology integrations that have enabled new
innovations like SendPro C-Series, the next generation office
sending solution for SMBs.
In addition to the acquisition of Newgistics, Pitney Bowes today
announced the opening of a new Presort Services Operating Center in
Huntington Beach, California that will further expand its entry
into the U.S. domestic parcels space. This will be the second
high-speed parcel sortation center in the Pitney Bowes Presort
Services network. Another center is located in San Francisco.
“Shipping will drive the next phase of our transformation.
Parcel volume has increased 48 percent globally over the past two
years and is expected to grow another 17 to 28 percent between 2017
and 2021. Today’s announcement of the SendPro C-Series family of
products and shipping solutions, combined with the acquisition of
Newgistics, and the expansion of our parcel services business
strengthens our presence in the shipping and sending market,” said
Lautenbach.
About Newgistics, Inc.Newgistics helps retailers and
brands grow with seamless, omni-channel solutions that span the
physical and digital sides of commerce. Its offerings, which
include digital commerce development, deep analytics, relationship
management, systems integration, fulfillment, parcel delivery and
returns management, provide retailers and brands with a modern
approach to enriching the customer journey. Its flagship digital
commerce platform, ncommerce, fuses proven technology for retail
environments into a stable, modern and infinitely scalable
platform. From device to doorstep, Newgistics helps retailers and
brands outpace the competition like no other service provider. For
more information, please visit www.newgistics.com.
About Pitney BowesPitney Bowes (NYSE:PBI) is a global
technology company powering billions of transactions – physical and
digital – in the connected and borderless world of commerce.
Clients around the world, including 90 percent of the Fortune 500,
rely on products, solutions, services and data from Pitney Bowes in
the areas of customer information management, location
intelligence, customer engagement, shipping, mailing, and global
ecommerce. And with the innovative Pitney Bowes Commerce Cloud,
clients can access the broad range of Pitney Bowes solutions,
analytics, and APIs to drive commerce. For additional information
visit Pitney Bowes, the Craftsmen of Commerce,
at www.pitneybowes.com.
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