Tech and shipping giant Pitney Bowes has signed a definitive agreement with Littlejohn & Co. LLC, a private investment firm based in Greenwich, to buy all shares of Newgistics Inc. for approximately $475 million. Newgistics is an Austin-based provider of parcel delivery, returns, fulfillment and digital commerce products for retailers and e-commerce brands.
“Newgistics fits uniquely at the intersection of our parcel growth strategies and will accelerate the overall transformation of Pitney Bowes,” said Pitney Bowes President and CEO Marc B. Lautenbach. “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.”
The transaction is expected to close by late third or early fourth quarter, subject to customary closing conditions. Pitney Bowes, headquartered in Stamford, intends to continue to operate the businesses as independent units through the remainder of 2017 and into the first quarter of 2018 to avoid any disruptions during the holiday shipping season.
Since being acquired by Littlejohn in 2013, Newgistics recorded greater than 50 percent growth in revenue, according to Edmund Feeley, a managing director at Littlejohn, who said the company had become “the leading player in the rapidly evolving and expanding e-commerce, logistics and fulfillment sectors.”