Belgian Post Group, also known as bpost, is all set to acquire U.S.-based e-commerce service provider Radial for $820 million.
Radial, the fulfillment operator formerly known as eBay enterprise, is a major player in omnichannel commerce technology solutions and operations. The company is owned by Sterling Partners and is headquartered in King of Prussia, Pennsylvania. Radial handles all the online orders for e-commerce companies and retail chains, and it is considered Amazon’s biggest competitor in terms of fulfillment operations in U.S. It is way ahead of its competitors in terms of scale, geographic conversion and scope of services. In 2016 the company was able to fulfill 306 million units for its retail customers across 24 fulfillment centers.
According to bpost, Radial expects revenue of around $1 billion in 2017 and earnings before interest, taxes, depreciation and amortization of at least $65 million.
“I’m very proud of this acquisition that represents a great leap forward for bpost, promoting us as a leading player in the e-commerce logistics business in the Benelux, Europe and throughout the world,” said Koen Van Gerven, CEO of bpost, in a statement.
Bpost is Belgium’s national postal service responsible for the delivery of national and international mail. The company is headquartered in Brussels. Compared to the smaller acquisitions made by bpost, this is one of the largest acquisitions in North America.
This acquisition will enable bpost to speed up its package delivery operations that are ordered online, which is considered to be a major growth area in the postal industry.
“I’m convinced that offering integrated and seamless e-commerce logistic solutions to our U.S. and European customers will help them grow their businesses,” said Van Gerven in a statement. “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.”
Currently bpost’s bulk of operations are limited only through Belgium. Through this relationship, bpost plans to utlize the expertise and credibility of Radial to extend its services, such as online fulfillment and payments in Europe. Bpost said it will utilize bridged financing to support this acquisition.