Belgium's Bpost buys U.S. e-commerce firm Radial for $820 million
The move is intended to give Bpost a major boost in its speed and reach in delivering packages ordered online, the major growth area in the postal industry.
Bpost said that the acquisition would also bring know-how in e-commerce services, including payment, tax and fraud protection and custom care for brands and retailers.
Bpost already has an international division known as Landmark Global, helping online sellers reach more customers internationally with hubs from Auckland to Seattle.
Radial, owned by Sterling Partners and based in King of Prussia, Pennsylvania, was created by merging eBay's former operations services division with U.S. firm Innotrac in 2016.
Bpost said Radial expects revenue of around $1 billion in 2017 and earnings before interest, taxes, depreciation and amortisation (EBITDA) of at least $65 million.
Bpost said it will use bridged financing to fund its acquisition, which is expected to close before the end of the year and have a positive impact on earnings per share from 2020. ■