Stamps.com is on a buying spree, with Endicia its latest target. The two companies provide shipping solutions popular with online sellers who rely on the services to streamline USPS postage, shipping, and tracking tasks.
Stamps.com entered into a definitive agreement to acquire Endicia for $215 million in cash, though the sale is subject to the Hart-Scott-Rodino Act, which gives the Justice Department 30 days to evaluate acquisitions and decide whether to investigate further possible antitrust implications.
In its announcement, Stamps.com said it primarily focuses on acquiring small business and enterprise mailing customers with approximately 514 thousand paid customers. Endicia focuses on professional high volume shippers by providing products that enable domestic and international shipping, and by collaborating with over 250 integration partners, Stamps.com explained.
In a letter to customers, Endicia cofounder and General Manager Amine Khechfe said the Endicia brand, mission and people were staying, and the Endicia management team would remain intact. "We will maintain our sharp focus on providing the shipping solutions that meet your needs."
Among the advantages Stamps.com outlined: the ability to cross-sell solutions, combined and enhanced customer support, and cost reductions achieved through synergies.
More significantly, Stamps.com said it expected the two companies to become more effective in competing against Pitney Bowes, eBay, and others.
Last year, Stamps.com bought ShipWorks for $22 million in cash and ShipStation for $50 million plus performance-linked shares.
One reader who uses ShippingEasy with a free Endicia account was concerned he'd be forced to use ShipStation in order to keep the free account.
What questions do you have about the acquisition?