Stamps.com® (Nasdaq:STMP) today announced that it has entered into a definitive agreement to purchase MetaPack Ltd., a United Kingdom-based company that provides the world’s leading multi-carrier enterprise-level solution to many of the world’s preeminent e-commerce retailers and brands.
MetaPack provides its customers access to the world’s largest carrier library with support for over 450 parcel carriers that operate in more than 200 countries. The MetaPack software platform is a secure, resilient and highly available system that processed over 550 million parcel shipments in 2017. MetaPack's platform also provides sophisticated solutions, including carrier management, a carrier optimization engine, a track and trace system, a parcel returns system, a delivery analysis and carrier SLA monitoring system, a sophisticated cross-border solution, and a system that provides dynamic delivery options right in the shopping cart. From a single integration, MetaPack’s customers are able to offer delivery choice and convenience in all major e-commerce markets around the world. MetaPack’s software also improves its customers’ shopping cart order conversion rates and order delivery satisfaction ratings.
MetaPack has over 500 customers, including many of the world’s leading e-commerce retailers and brands. MetaPack’s website includes a small sample of its retailers, brands and customer case studies. The company’s business model is focused on SaaS, and it generated revenue of approximately £36 million in its fiscal year ending March 31, 2018, with a gross margin of approximately 87% and an operating margin of approximately 10%. MetaPack has approximately 350 employees located in six office locations around the world.
“The acquisition of MetaPack represents a significant strategic investment in our global e-commerce shipping business,” said Ken McBride, Stamps.com chairman and CEO. “MetaPack is the leading enterprise-level multi-carrier e-commerce software platform supporting the world’s largest retailers and the world’s best known brands. MetaPack has significant business in Europe, complementing Stamps.com’s strong position in the U.S. MetaPack also serves the largest enterprises and retailers, complementing Stamps.com’s traditional focus on smaller businesses. 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.”
“This is a hugely exciting development for MetaPack,” said Steve Rowley, Executive Chairman. “The acquisition by Stamps.com is positive news for our customers, partners and employees. As well as enabling us to broaden our proposition and enhance our global label library, it also gives us the degree of scale and support that we need to service global e-commerce customers.”
Stamps.com has agreed to purchase MetaPack for approximately £175 million in cash, which is approximately $230 million, funded entirely from current cash balances. The Boards of Directors of both companies have approved the transaction, which is expected to close during August 2018. Stamps.com plans for MetaPack to continue to operate as a wholly-owned subsidiary led by members of its existing management team.
Stamps.com will further discuss the acquisition of MetaPack during its upcoming second quarter earnings conference call on August 1, 2018.