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Belgium's Bpost buys U.S. e-commerce firm Radial for $820 million
October 9, 2017 / 6:25 AM / 9 days ago

Belgium's Bpost buys U.S. e-commerce firm Radial for $820 million

Koen Van Gerven, Chief Executive Officer of Belgium's national postal deliverer bpost, speaks next to International Director Kurt Pierloot during a news conference in Brussels, Belgium, October 9, 2017. REUTERS/Francois Lenoir

BRUSSELS (Reuters) - Bpost , Belgium’s national postal deliverer, said on Monday it has agreed to buy U.S.-based e-commerce service provider Radial for $820 million including debt.

The move is intended to give Bpost a major boost in its speed and reach in delivering packages ordered online, the major growth area in the postal industry.

Bpost said that the acquisition would also bring know-how in e-commerce services, including payment, tax and fraud protection and custom care for brands and retailers.

Bpost already has an international division known as Landmark Global, helping online sellers reach more customers internationally with hubs from Auckland to Seattle.

Radial, owned by Sterling Partners and based in King of Prussia, Pennsylvania, was created by merging eBay’s former operations services division with U.S. firm Innotrac in 2016.

Koen Van Gerven, Chief Executive Officer of Belgium's national postal deliverer bpost, poses after a news conference in Brussels, Belgium, October 9, 2017. REUTERS/Francois Lenoir

Bpost said Radial expects revenue of around $1 billion in 2017 and earnings before interest, taxes, depreciation and amortization (EBITDA) of at least $65 million.

Slideshow (5 Images)

Bpost said it will use bridged financing to fund its acquisition, which is expected to close before the end of the year and have a positive impact on earnings per share from 2020.

KBC Securities said the deal fit Bpost’s strategy of strengthening itself abroad and pushing beyond just delivering parcels and into e-commerce services, adding that it could easily finance the deal through cash and debt.

Bpost shares were down 1.9 percent at 24.33 euros at 0800 GMT, although after a three-month rally were still 15 percent higher than their level in early June.

JP Morgan Securities LLC was financial advisor to Radial.

Reporting by Toby Sterling and Philip Blenkinsop; editing by Jason Neely

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