The company plans to use the funds to expand internationally.
ShipStation integrated Stamps.com pricing into its platform earlier this year.
Stamps.com, which helps e-retailers work with the United States Postal Service, has acquired shipping software vendor ShipStation. Based in Austin, Texas, ShipStation offers subscription-based e-commerce shipping software under the brand names ShipStation and Auctane.
ShipStation, which launched in 2010, provides Internet-hosted software that retailers access via the web. The vendor designs its tools to integrate with a retailer’s e-commerce sites and with e-marketplaces and comparison shopping engines that retailers sell through. It combines all of a retailer’s orders into a single system to help retailers manage their shipping orders, the company says, with orders from marketplaces such as eBay Inc. and Amazon.com Inc. automatically imported into the system.
With the acquisition, Stamps.com aims to grow its e-commerce business. "E-commerce-driven package shipping is the fastest growing segment within the mailing and shipping space, and this acquisition will allow us to accelerate our growth in this area," says Ken McBride, Stamps.com chairman and CEO.
The two companies announced earlier this year an integration between ShipStation’s platform and Stamps.com pricing information, which allows ShipStation customers to compare rates, purchase postage and track packages using Stamps.com from within the ShipStation software. "The acquisition builds on the strong partnership we have developed and we look forward to continuing to build the ShipStation business with the support of the Stamps.com team," says Nathan Jones, ShipStation president and CEO.
Stamps.com purchased ShipStation for $50 million in cash plus up to 768,900 shares of Stamps.com common stock based on performances. At today’s stock price of Stamps.com, those shares would be worth $27.4 million. ShipStation will operate as an independent subsidiary led by the existing management team.