El Segundo postage seller Stamps.com announced on Tuesday it plans to acquire Endicia, a subsidiary of Atlanta’s Newell Rubbermaid Inc., for $215 million in cash.
Endicia, whose headquarters is in Palo Alto, provides shipping technologies and solutions for the U.S. Postal Service and private shipping companies.
“The acquisition of Endicia represents a significant strategic investment in our high volume shipper business,” Stamps.com Chief Executive Ken McBride said in a statement. “Together, the two companies will be able to more effectively compete with the very large competitors we face today in the mailing and shipping industry.”
Endicia also sells products under brand names, including DYMO Stamps and PictureItPostage. The company had about $59 million in revenue last year.
Stamps.com announced the deal after markets closed Tuesday. Shares of the company closed the trading day at $58.30, down one-tenth of a percent.
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