Stamps.com To Buy Online Shipping Firm Endicia For $215 Mln.

(RTTNews) - Stamps.com (STMP), a provider of Internet-based postage solutions, on Tuesday said it has agreed to buy online shipping company Endicia from Newell Rubbermaid for $215 million in cash.

Endicia, based in Palo Alto, California, provides high volume shipping technologies and solutions for use with the U.S. Postal Service and other postal partners. Endicia had about $59 million in revenue during fiscal 2014.

Apart from selling products under brand names including Endicia, DYMO Stamps and PictureItPostage, Endicia also provides seamless access to USPS and other shipping services through integration with more than 250 partner applications.

"The acquisition of Endicia represents a significant strategic investment in our high volume shipper business," said Ken McBride, CEO of Stamps.com.

The boards of both companies have approved the deal which is expected to close within 5 business days after the fulfillment of the customary closing conditions. No shareholder approval is required for the deal.

Stamps.com said it plans to fund the deal with at least $50 million of cash on hand and committed financing for $165 million from a group of US banks.

For Newell, the maker of consumer and commercial products, the deal is part of efforts to divest non-core businesses. The sale of Endicia furthers our strategy of strengthening our portfolio to create a faster growing, higher margin business, said Newell CEO Michael Polk.