As part of its bid to expand further into the U.S. domestic parcels market at scale, Pitney Bowes has agreed to acquire Newgistics for $475 million. The purchase is projected to be finalized in late Q3 or early Q4. To avoid disruptions during the holiday season, Pitney Bowes plans to operate the businesses as independent units into Q1 2018.
Known for its returns processing capabilities, Newgistics provides a range of e-Commerce capabilities for nearly 500 retail clients. The privately held company is a workshare partner of the U.S. Postal Service (USPS) and processes nearly 100 million parcels annually.
“Newgistics fits uniquely at the intersection of our parcel growth strategies and will accelerate the overall transformation of Pitney Bowes,” said Marc Lautenbach, President and CEO of Pitney Bowes in a statement. “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 — definitely anchors Pitney Bowes in a growing space and vastly increases the value we can deliver for our clients.”
In addition to the acquisition, Pitney Bowes announced the opening of a new Presort Services Operating Center in Huntington Beach, Calif. This will be the second high-speed parcel sortation center in the Pitney Bowes Presort Services network; another center is located in San Francisco.