Pitney Bowes is taking a major step to boost its cross-border e-commerce business with the agreed takeover of global e-commerce firm Borderfree for $395 million.
The US group said Borderfree’s cross-border ecommerce solutions would complement and expand its existing e-commerce capabilities, which help clients grow their businesses internationally by reducing the complexity of cross-border ecommerce.
“The acquisition of Borderfree not only makes sense for our clients, it accelerates our strategic vision to grow our company through expansion of our digital commerce businesses,” said Marc B. Lautenbach, President and Chief Executive Officer, Pitney Bowes.
“The combination of Borderfree’s cross-border ecommerce capabilities with our own solutions expands our portfolio of offerings and extends our global reach. 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.”
Under the terms of the definitive agreement, Pitney Bowes will commence a tender offer for all outstanding common shares of Borderfree, at $14.00 per share in cash or approximately $395 million in the aggregate, net of expected cash and investments on Borderfree’s balance sheet at the time of closing. The acquisition is expected to close in the second quarter 2015.
“We’re excited to join forces with Pitney Bowes,” said Michael DeSimone, Chief Executive Officer of Borderfree. “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 ecommerce market.”
Borderfree provides cross-border ecommerce solutions through a proprietary technology and services platform that enables retailers in the United States and United Kingdom to transact with consumers around the world. The firm manages all aspects of the international shopping experience, including site localization, multi-currency pricing, payment processing, fraud management, landed cost calculation, customs clearance and brokerage and global logistics services while maintaining the integrity of our customers' brand and the consumer experience.
Its customers include retailers, department stores, apparel brands, and lifestyle brands that sell a range of physical goods online. Borderfree generated $125 million in revenue in 2014. It has 253 employees and is headquartered in New York, NY, with offices in Tel Aviv, Israel; Dublin, Ireland; and Brighton, England.
