E-commerce shipping solutions provider Stamps.com Inc. (STMP:NASDAQ) today announced that "it has entered into a definitive agreement to be acquired by Thoma Bravo, a leading software investment firm, in an all-cash transaction that values Stamps.com at approximately $6.6 billion."
The company indicated that under the terms of the agreement, Stamps.com common shareholders will receive total consideration of $330.00 per share in cash for each share owned. The firm noted that the $330.00 per share price represents a 71% premium over Stamps.com three-month volume-weighted average closing share price through the close of trading yesterday.
The report stated that after the transaction is closed, Stamps.com will no longer be a publicly traded entity and will join Thoma Bravo's portfolio of companies.
The company's Chairman and CEO Ken McBride commented, "Today's announcement marks a significant milestone in the history of Stamps.com and will provide us with a new and exciting platform from which we can continue to execute our global strategy driven by best-in-class software and technology solutions…With the financial and operational support of Thoma Bravo, Stamps.com can continue to innovate and pursue growth opportunities to capture the expanding e-commerce shipping market and extend our position as the leading global multi-carrier e-commerce shipping software company."
Managing Partner at Thoma Bravo Holden Spaht remarked, "As the first company to introduce online postage and an early innovator in e-commerce shipping software, Stamps.com has established itself as a key technology solution in worldwide e-commerce…With a highly-seasoned management team that has driven impressive growth for more than twenty years, an innovative suite of market-leading software solutions, and a large and growing customer base, Stamps.com is well positioned to capitalize on the strong secular tailwinds in e-commerce and we are excited to support the company in its next chapter of growth."
Brian Jaffee, a principal at Thoma Bravo, added, "We've been tracking the impressive growth of Stamps.com for many years and are excited to partner with the Stamps.com team to support the company in continuing to drive cutting edge product innovation, expansion into new markets, and delivery of an even greater level of service and support to its impressive customer base."
Stamps.com advised that its Board of Directors has already unanimously approved the transaction, which is expected to close in Q3/21, subject to ordinary closing conditions along with stockholder and regulatory approvals. The company stated that it will be hosting a special shareholders' meeting in connection with the transaction and is recommending that stockholders vote in favor of the offer from Thoma Bravo. Post acquisition, the company will continue to be headquartered in El Segundo, Calif.
The firm noted that the agreement provides Stamps.com with a 40-day "go-shop" option which will expire August 18, 2021. This condition allows Stamps.com's Board and advisors to actively search for and consider presumably higher or more favorable bids from other companies.
Stamps.com stated that "it is the leading provider of e-commerce shipping software solutions to customers including consumers, small businesses, e-commerce shippers, enterprises, and high-volume shippers." The firm's solutions and brands tailored to the letter and package shipping industry include Endicia®, GlobalPost, Metapack™, ShippingEasy®, ShipEngine® ShipStation®, ShipWorks®, GlobalPost and Stamps.com.
Thoma Bravo is a software and technology focused private equity firm that as of March 31, 2021, had greater than $78 billion in assets under management. The firm has offices in San Francisco, Chicago and Miami and invests primarily in high-growth software and technology sector companies.
Stamps.Com started off the day with a market cap of around $3.6 billion with approximately 18.32 million shares outstanding and a short interest of about 4.2%. STMP shares opened greater than 60% higher today at $322.71 (+$124.99, +63.22%) over yesterday's $197.72 closing price. The stock has traded today between $319.00 to $324.0972 per share and is currently trading at $324.04 (+$126.32, +63.89%).
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