The competition and rivalry in e-commerce race seems to hike up every year with new companies coming into the market or the existing companies acquiring other smaller startups. Recently, the Belgian Post Group declared its latest move to increase its operations in North America.
This acquisition promotes Bpost as a leading player in the e-commerce logistics business: Bpost CEO
The Belgian Post Group, which is popularly known as bpost, announced recently that it has acquired the fulfilment company Radial, which was formerly known as eBay enterprise. The deal was finalized for $820 million. Radial is considered as the largest rival of the online retailing giant – Amazon – for fulfilment in the United States, hence, this deal is pretty important for the company. The company said that the fulfillment company has tapped into deliveries from huge retailers as well hundreds of smaller startups and businesses, which accounted for over 20% of all e-commerce orders that flow between the European Union and the United States today.
In a statement, Koen Van Gerven, the CEO of bpost, said that he is very proud of this latest acquisition that represents a great leap forward for bpost. He said that the recent acquisition promotes them as a leading player in the e-commerce logistics business in the Benelux, Europe and throughout the world.
Further, the Chief Executive Officer of bpost, said that he is convinced that providing “integrated and seamless e-commerce logistic solutions to our US and European customers will help them grow their businesses. The expertise and capabilities of Radial employees are a unique complement to bpost and will help us in becoming a leader in e-commerce logistics. I’m very happy to welcome all Radial employees to our bpost family.”
Bpost has around $2.9 billion annually
For Sterling Partners, however, this $820 million deal is not actually a great exit. Sterling Partners had been the latest group backing Radial. In 2015, when Radial was sold by eBay to a Permira-led consortium, its value was $925 million that itself was a notable decline in comparison to the amount – $2.4 billion – that eBay paid when it first acquired the basis of eBay enterprise in 2011.
The company Bpost has over $2.9 billion in revenues yearly and it has been on an acquisition spree in the last year and a half. The company has bought several delivery companies both in last-mile delivery and freight both in Europe and North America to expand its economies of scale. Consumer-focused businesses like Apple Express and Matt’s Express as well as huge companies like Freight Distribution Management have been acquired by bpost. The CEO of Radial, Matthew Espe, said in a statement that Radial represents the “gold standard for profitable e-commerce and omnichannel technology arming merchants with the capabilities needed to operate at a global scale.”
Espe added, “There has never been a more important time when it comes to helping brands grow their online business profitably, especially when reaching their customer base internationally. Joining the bpost family is a critical next step for both companies as we strive to help meet customer expectations on the backbone of industry- leading technology and services.”