Stamps.com (Nasdaq: STMP) is buying Newell Rubbermaid Inc. (NYSE: NWL) unit Endicia for $215 million.
Both companies provide online mailing and shipping services, but are focused on different market segments. Stamps focuses more on small business and enterprise mailing customers, and Endicia focuses more on high-volume shippers.
Endicia, headquartered in Palo Alto, California, provides technology that can be used with the U.S. Postal Service and other postal operations under brands names Endicia, DYMO Stamps and PictureItPostage. Endicia had $59 million in revenue in 2014.
The El Segundo, California-based buyer also provides Internet-based postage services, allowing users to print postage from a computer.
Newell Rubbermaid, headquartered in Atlanta, has been buying assets and divesting others as part of a plan to boost profitability. In December, the company agreed to buy Baby Jogger to add to its stroller unit, Graco. In September, the company bought beverage container maker Ignite USA LLC. In 2013, Newell Rubbermaid sold a suite of hardware businesses to Nova Capital Management Ltd.
Stamps plans to fund the deal with cash and $165 million in committed financing. Manatt Phelps & Phillips LLP was Stamps' legal adviser. Baird Global Investment Banking provided financial advice to Newell.