Logistics startup Stord is acquiring the e-commerce fulfillment services operations of Pitney Bowes.
Here’s a detailed explanation with key points:
- Announcement: The news was reported by The Information and confirmed by a memo sent to Pitney Bowes staff.
- Market Reaction: Following the announcement, Pitney Bowes’ stock rose by 12% in after-hours trading.
- Details Unavailable: The specific terms of the deal were not disclosed.
- Company Confirmation: Pitney Bowes confirmed the sale in a statement to Seeking Alpha, describing the fulfillment services as a minor part of their e-commerce segment.
- Ongoing Review: Pitney Bowes is still reviewing its Global Ecommerce business as part of a strategic evaluation.
- Pressure from Investors: The company has faced pressure from activist investor Hestia Capital Management to review and potentially sell underperforming parts of its business.
- Leadership Changes: In late May, Pitney Bowes appointed Lance Rosenzweig as interim CEO after Jason Dies stepped down and retired. Additionally, the company elected four board members proposed by Hestia Capital.
- Hestia’s Involvement: Hestia Capital disclosed its stake in Pitney Bowes in November and has since been involved in discussions about improving the company’s performance, including selling off certain parts.
In summary, Pitney Bowes has sold a small part of its e-commerce fulfillment services to Stord amid ongoing strategic reviews and investor pressure, with recent leadership changes also playing a role in the company’s current actions.
About Pitney Bowes
- Global Presence: Pitney Bowes is a global shipping and mailing company serving over 90% of the Fortune 500 companies.
- Services: They provide technology, logistics, and financial services to small businesses, retail, enterprise, and government clients.
- Leadership: Lance Rosenzweig is the Interim Chief Executive Officer, focusing on advancing the company’s strategic initiatives and improving performance.
- Headquarters and Facilities: The company is headquartered in Stamford, Connecticut, with a national network of over 55 facilities across the United States.
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