El Segundo’s Stamps.com Inc. announced today a definitive agreement with United Kingdom supply chain management company MetaPack Ltd. to buy the company for approximately $230 million in cash.
MetaPack’s business model focuses primarily on the software as a service (or SaaS) market and generated revenues of $47.5 million in its fiscal year ending March 2018. In total, the company has more than 500 customers, many of them e-commerce companies. Metapack operates with 450 parcel carriers and does business in over 200 countries.
Steve Rowley, chief executive at MetaPack, called the deal “hugely exciting.”
“The acquisition by Stamps.com is positive news for our customers, partners and employees,” Rowley said, adding that it will also enable MetaPack “to broaden our proposition and enhance our global label library, and also (give) us the degree of scale and support that we need to service global e-commerce customers.”
The purchase by Stamps.com was funded entirely from current cash balances, with unanimous approval from both Stamps.com and MetaPack’s boards of directors. The transaction is expected to officially close Aug. 1. During a planned second quarter earnings call that day, Stamps.com executives are expected to divulge more information about the acquisition.
Stamps.com ranks 27 on the Business Journal’s list of top 100 largest public companies in Los Angeles County with a market cap of $4.5 million as of June 30, 2018, compare with last year, when the company was ranked 47 with a market cap of $1.2 million. On the Business Journal’s 2018 list of 100 most profitable public companies, Stamps.com ranked 19 with a three-year average return on equity of 19.1 percent. Though it stayed in the same spot as the 2017 list, Stamps.com’s average ROE grew 2.9 percent.
“MetaPack has significant business in Europe, complementing Stamps.com’s strong position in the U.S.,” said Ken McBride, chairman of Stamps.com. “MetaPack also serves the largest enterprises and retailers, complementing Stamps.com’s traditional focus on smaller businesses, and together, the two companies will be better able to provide innovative solutions in an increasingly global e-commerce world to customers of all sizes and in all geographies,” McBride added.
Tech reporter Samson Amore can be reached at firstname.lastname@example.org or (323) 556-8335. Follow him on Twitter @samsonamore.
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