Acquisition augmented by organic expansion of presort and parcel
services for enterprises and SMBs
STAMFORD, Conn.--(BUSINESS WIRE)--Sep. 6, 2017--
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 Bowes
Pitney 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.
View source version on businesswire.com: http://www.businesswire.com/news/home/20170906006210/en/
Source: Pitney Bowes
Pitney Bowes
Bill Hughes, 203-351 6785
Chief Communications
Officer
William.Hughes@pb.com
