Belgian Post Group (aka bpost) has agreed to acquire Radial, a private equity-backed ecommerce logistics company, at an enterprise value of $820 million.
The deal would secure bpost a US-based business which anticipates around $1 billion in revenue in 2017 and EBITDA of up to $70 million. Radial provides omnichannel ecommerce technology for SMEs and has, in recent times, been seen as Amazon's chief rival in the space.
Q2 Hedge Funds Portable Database Now LIVE!!! Letters, Conferences, Slides And More [UPDATED 7/13 14:48 EST]
Simply click the menu below to perform sorting functions. This page was just created on 7/1/2020 we will be updating it on a very frequent basis over the next three months (usually at LEAST daily), please come back or bookmark the page. As always we REALLY really appreciate legal letters and tips on hedge funds Read More
Radial released a paper in November critiquing Amazon's purported shift from customer service to pushing profits. And in January, the Radial announced a whole raft of services for partnering with mid-market retailers.
Sellers in Monday's deal, which is expected to close in 4Q, include Sterling Partners and Longview Asset Management. Radial was formed through the April 2016 merger of eBay Enterprise and Innotrac, businesses that Sterling backed in November 2015 and January 2014, respectively.
Taking on Amazon
Whether inviting the wrath of Jeff Bezos is a wise thing remains to be seen, given the ecommerce giant's might. Retail stocks plummeted on the announcement of Amazon's $13.7 billion acquisition of Whole Foods, for example, with companies as large as Walmart feeling the heat. On top of this, the deal's aftershocks also took a chunk out of Blue Apron's IPO price expectations.
Radial may believe that Amazon's size is making it miss out on market opportunity in its original logistics business, given the behemoth's recent moves into industries like groceries and video streaming. For bpost, the deal is a logical step in boosting its own ecommerce offering and building value between Europe and North America. However, as many can attest, betting against the Bezos often doesn't fare well.
Just how far do Amazon's tentacles reach?
Check out our map showcasing the many industries that the company has entered.
Article by Sean Lightbown, PittchBook