Pitney Bowes Acquires Newgistics for $475 Million

Pitney Bowes (NYSE:PBI), a global technology company that provides innovative products and solutions to power commerce, today announced that it has signed a definitive agreement to acquire Newgistics, Inc. (Newgistics), an Austin, Texas-based provider of parcel delivery, returns, fulfillment and digital commerce solutions for retailers and ecommerce brands. Under the terms of the definitive agreement, Pitney Bowes will purchase all shares of the privately held Newgistics for approximately $475 million.

Newgistics, founded in 1999, combines industry-leading processes and technology, personalized service, and the convenience of the USPS to offer a comprehensive set of delivery and returns services to residential shippers. The result is improved service, end-to-end visibility, and reduced costs. The company had previously raised $25 million from investors, including Austin Ventures.

According to an official company statement, the acquisition will accelerate Pitney Bowes’ expansion into the U.S. domestic parcels market at scale, enabling the company to deliver a broader range of consumer-focused ecommerce and parcel management solutions to retailers, small and medium businesses, and enterprise clients.

“Newgistics fits uniquely at the intersection of our parcel growth strategies and will accelerate the overall transformation of Pitney Bowes,” said Marc B. Lautenbach, president and chief executive officer, Pitney Bowes. “This acquisition – combined with recent innovations in mailing and shipping for SMB clients, organic growth of our global ecommerce 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.”