Global e-commerce platform buys US logistics firm
Global e-commerce solutions provider, Pitney Bowes, has acquired US-based logistics firm, Newgistics, for US$475 million.
The deal is set to close by late third or early fourth quarter subject to customary closing conditions, according to Pitney Bowes.
Newgistics provides parcel delivery, returns, fulfilment and digital commerce solutions for nearly 500 retailers and e-commerce brands. It also has a relationship with the United States Postal Service (USPS), a key reason Pitney Bowes bought the company.
Newgistics processes 100 million parcels annually and more than 50 per cent of all Parcel Returns Select packages shipped through the USPS. Its network includes nine operating centers and an asset-light national transportation network of more than 50 partners.
“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 CEO of Pitney Bowes.
“This acquisition – combined with recent innovations in mailing and shipping for SMB clients, organic growth of our global e-commerce 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.”
A number of Australian retailers, including Adore Beauty and General Pants, use Pitney Bowes’ cross-border solution to support global e-commerce sales.
In addition to the acquisition of Newgistics, the e-commerce solutions provider has announced the opening of its second high-speed parcel sorting centre in the US.
“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,” said Lautenbach.
“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.”