Although intent for an acquisition was announced last week, in the last 72 hours it was formally announced that Stamps.com (NASDAQ: STMP) will be acquiring Austin, Texas-based shipping software company ShippingEasy for US$55 million in cash.
The company was originally founded in Sydney, Australia by serial entrepreneur Mark Helvadjian in February 2011.
Not long after the end of the 11/12 financial year, and just a a few weeks after she sold her company Kidspot to Newscorp for a reported $45 million, entrepreneur and seasoned corporate leadership expert Katie May was appointed as CEO. This meant moving the company base to Austin, where Katie had relocated.
The platform features integrations with more than 40 leading marketplaces, including Shopify, Bigcommerce, Magento, eBay, PayPal, and Amazon, which allow users to import and export fulfilment and tracking data in real time across all of their selling channels. Perhaps the most unique feature of the platform is its complimentary access to shipping specialists, helping merchants to streamline workflow and save on shipping costs.
When May became the CEO of the company in 2012, the first challenge she faced was the fact that the software did none of the above and was in fact – as the also new CTO, Barry Cox put it at the time – “faulty”. Not only could the platform not do what they said it could do and what paying customers would be expecting, the infrastructure was not robust enough to handle high volumes of customers, meaning scalability was going to be an issue.
There were investors that had just gone in on a $2 million round, she had recruited key talent from her personal network, her reputation was on the line and she was starting to doubt whether or not she was the right person to be running a tech company. Clearly though, her Plan B in rebuilding the software from scratch and managing customers closely worked.
May said in a statement on the acquisition that she was excited to be able to further leverage of the strong relationship ShippingEasy and Stamps.com had built with each other.
“We’re very excited to become a part of Stamps.com,” she said. “The acquisition builds on the strong partnership we have developed and we look forward to continuing to build the ShippingEasy business with the support of the Stamps.com team.”
Echoing those sentiments was Ken McBride, the chairman and CEO of Stamps.com.
“The acquisition of ShippingEasy represents a significant strategic investment in our e-commerce shipping business,” said McBride in a statement to NASDAQ.
“Ecommerce-driven package shipping is our fastest growing segment and this acquisition will allow us to continue to accelerate our growth in this area. ShippingEasy adds an outstanding solution to our portfolio of products which will allow us to serve the needs of more customers, and will allow us to continue to solidify our leadership in e-commerce shipping.”
Aside from the $55 million in cash, the deal also includes equity awards for key members of management directly linked to key performance indicators that could result in them being issued up to 87, 000 shares of Stamps.com common stock.
ShippingEasy will operate as a wholly-owned subsidiary for the foreseeable future and all existing members of management will remain in those roles.
Featured Image: CEO, ShippingEasy, Katie May | Source: Forbes.com