Israeli e-commerce platform Global-e Online (Nasdaq: GLBE) today announced that it has entered into a definitive agreement with Pitney Bowes (NYSE: PBI) to acquire the global shipping and mailing company’s Borderfree cross-border ecommerce solutions business for $100 million cash. This latest acquisition comes six months after Global-e acquired US e-commerce solutions company Flow Commerce for up to $500 million.
Pitney Bowes, which provides technological, logistical and financial solutions for shipping, parcels, post and e-commerce bought Borderfree in 2015 for $450 million.
The deal includes a strategic partnership between Global-e and Pitney Bowes in which Pitney Bowes will provide logistics services to Global-e and its customers and will receive access to Global-e's platform for its customers. The acquisition and the partnership will strengthen the solutions offered by Global-e for large organizations as the two companies combine their capabilities.
Global-e cofounder and president Nir Debbi said, "This acquisition follows our strategy to support the global expansion of brands of all sizes in the most sophisticated way possible. By partnering with Pitney Bowes and utilizing Borderfree’s demand generation capabilities, Global-e will continue to enhance the value it brings to global brands looking to fully capitalize on their cross-border D2C channel. In addition, the acquisition will further cement our leadership as the end-to-end solution of choice for any size of merchant, from small and emerging brands all the way to the world’s largest enterprise brands."
Global-e cofounder and CEO Amir Schlachet added, "Borderfree shares our values and aspirations to help brands become global."
The transaction is expected to close during the third quarter of 2022, subject to customary conditions, and Borderfree is expected to report over $40 million in revenues in 2022.
Borderfree was founded in 1999 by Yuval Tal, who also founded payments solution Payoneer (Nasdaq: PAYO). The company initially handled international trade and developed a platform allowing customers outside of the US to see online deals in their local currency and pay with their local credit cards on US sites. After raising $40 million from Pitango and other investors in 2014, the company held an IPO on Nasdaq in 2014 at a company valuation of $490 million and it was sold to Pitney Bowes the following year.
Global-e held its IPO on Nasdaq in May 2021 at a company valuation of $3.6 billion. At its peak last year the Petah Tikva company had a market cap of over $11 billion, which has since fallen back to $2.9 billion at close of trade yesterday. The company's share price is up 7.21% in premarket trading.
Published by Globes, Israel business news - en.globes.co.il - on June 21, 2022.
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