Stamps.com to Acquire Rival Endicia for $215m
Ken McBride, Stamps.com chairman and CEO, said, "The acquisition of Endicia represents a significant strategic investment in our high volume shipper business. Endicia is a great complement to Stamps.com's traditional strength in the enterprise and small business mailing segments. High volume shipping is the fastest growing segment within the mailing and shipping space and this acquisition will allow us to accelerate our innovation, enhance and streamline our sales and marketing, and accelerate our growth. Together, the two companies will be able to more effectively compete with the very large competitors we face today in the mailing and shipping industry."
Endicia's parent company Newell Rubbermaid announced on Tuesday that it had made a definitive agreement to make the sale.
Michael Polk, Newell Rubbermaid president and chief executive officer, said, "The announced sale of our Endicia business furthers our strategy of strengthening and focusing our portfolio to create a faster growing, higher margin business. While a very attractive asset, Endicia is not focused in the core of our portfolio, and under new ownership is in an exciting position to continue innovating and offering the best possible solutions and service for its customers and partners."
Stamps.com was founded in 1996 to offer US postage printing over the Internet. It claims more than 80% of the internet postage subscription market, and has seen its annual revenue rise from $85.5m in 2010 to $147.3m in 2014. Stamps.com said it would fund the acquisition with $50m in cash and $165m in financing.
Source: Post & Parcel