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Pitney Bowes Jumps Following Stamps.com Sale Plan

Pitney Bowes was rising after Stamps.com said PE firm Thoma Bravo is paying $6.6 billion cash for the shipping-solutions company.
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Shares of commerce-solutions provider Pitney Bowes  (PBI) - Get Report jumped on Friday after the private equity firm Thoma Bravo agreed to pay $6.6 billion to take over rival Stamps.com  (STMP) - Get Report

The Stamford, Conn., company's shares at last check were up 13% to $9.25. They've traded on Friday up as much as 21% at $9.92. In late January Pitney Bowes shares touched a 52-week high $15.50. 

In the first quarter, Pitney Bowes narrowed its net loss to 18 cents a share from $1.22 a share in the year-earlier quarter. Revenue rose 15% to $915.2 million.

On Friday Stamps.com said it agreed to be acquired by software-focused private-equity firm Thoma Bravo for $6.6 billion cash.

Under the terms the Chicago PE firm will pay $330 cash for each Stamps.com share. That's a 67% premium over the stock's closing price of $197.72. on Thursday.

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The deal includes a 40-day go-shop period -- through Aug. 18 -- during which the company can actively seek better acquisition proposals. During this window, the board will have the right to terminate the Thoma Bravo agreement with no penalty, the companies said.

At last check Stamps.com shares were up 63% at $323.05.

With Thoma Bravo's backing, Stamps.com will aim "to capture the expanding e-commerce shipping market," Chief Executive Ken McBride said in a statement.

"The e-commerce landscape is rapidly evolving and we look forward to partnering with the Stamps.com team to continue building on the company’s leading position in e-commerce shipping solutions," said Thoma Bravo principal Brian Jaffee. 

Stamps.com's fundamentals soared last year amid the pandemic as more people were forced to shop and do business from home. A jump in small businesses based in cyberspace is also a bullish trend for the shipping company.