Pitney Bowes Acquires Newgistics
Sunil Grover, Managing Partner
Total consideration: $475m
Newgistics raised $26.5m in disclosed private funding from institutional investors including Austin Ventures and others.
- On September 06, 2017 Pitney Bowes Inc. (NYSE: PBI) announced its acquisition of Newgistics, Inc. for $475 million.
- Newgistics, headquartered in Austin, TX, provides omni-channel commerce software and technology services and is best known for its returns-processing capabilities, serving nearly 500 retail clients, like Gilt and Clean Boutique.
- Newgistics is a workshare partner of the USPS and processes nearly 100 million parcels annually, including more than 50 percent of all returned packages shipped through the USPS.
- This transaction is aligned with Pitney Bowes’ continued investments into mail and parcel processing (PPS, Maponics), as they forecast 17-28% annual growth in global parcel volume through 2021.
Shipping Applications are Helping Traditional Industry Transition with Technology
- All players in the supply chain and logistics space are being pressured by continued eCommerce trends, such as the Amazon effect and batch-size one trends.
- This is causing even larger companies like Pitney Bowes, which has been declining in revenue since 2014, to make large transactions in efforts to keep up. German conglomerate Körber recently acquired HighJump Software to strengthen their warehouse management and logistics capabilities as well.
- There have been a number of acquisitions in this space this year. A notable transaction includes the establishment of Logistyx, which was formed by the three-way merger of Pantechnik, ADSI, and Agile Network, as reported in our May 31st Spotlight.