Pitney Bowes Inc. (NYSE:PBI), a global technology company that provides innovative products and solutions to power commerce, agreed to acquire Borderfree Inc. (NASDAQ:BRDR), a market leader in global ecommerce solutions. Pitney Bowes agreed to pay $14 a share in cash for Borderfree, representing approximately $395 million in the aggregate, more than double Tuesday’s closing price.
The acquisition is expected to close in the second quarter 2015 subject to customary closing conditions.
New York-based Borderfree was founded in Israel by serial entrepreneur Yuval Tal in 1999 and first came to market as E4X, being renamed as FiftyOne in 2007. In 2012, FiftyOne acquired Borderfree from Canada Post, and adopted the name in 2013. The company has 253 employees and offices in Tel Aviv, Dublin, and Brighton, UK.
Borderfree went public on Nasdaq in March 2014 raising $80 million, and generated $125 million in annual revenue. Prior to its IPO it had raised $11.1 million in venture funding from Vintage Investment Partners, Adams Street Partners, Delta Ventures, Venture Strategy Partners, Pitango Venture Capital, and Viola Credit.
“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 CEO, 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.”
“We’re excited to join forces with Pitney Bowes,” said Michael DeSimone, CEO 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. The company operates a proprietary technology and services platform that enables retailers in the United States to transact with consumers in approximately 100 countries and territories worldwide. Its customers include retailers, department stores, apparel brands, and lifestyle brands that sell a range of physical goods online, including apparel, handbags, jewelry, sporting goods, home décor, and toys.
Pitney Bowes is a global technology company offering innovative products and solutions that enable commerce in the areas of customer information management, location intelligence, customer engagement, shipping and mailing, and global ecommerce. More than 1.5 million clients in approximately 100 countries around the world rely on products, solutions and services from Pitney Bowes.