Belgian Post Group (aka bpost) has agreed to acquire Radial, a private equity-backed ecommerce logistics company, at an enterprise value of $820 million.
The deal would secure bpost a US-based business which anticipates around $1 billion in revenue in 2017 and EBITDA of up to $70 million. Radial provides omnichannel ecommerce technology for SMEs and has, in recent times, been seen as Amazon's chief rival in the space.
Radial released a paper in November critiquing Amazon's purported shift from customer service to pushing profits. And in January, the Radial announced a whole raft of services for partnering with mid-market retailers.
Sellers in Monday's deal, which is expected to close in 4Q, include Sterling Partners and Longview Asset Management. Radial was formed through the April 2016 merger of eBay Enterprise and Innotrac, businesses that Sterling backed in November 2015 and January 2014, respectively.
Radial may believe that Amazon's size is making it miss out on market opportunity in its original logistics business, given the behemoth's recent moves into industries like groceries and video streaming. For bpost, the deal is a logical step in boosting its own ecommerce offering and building value between Europe and North America. However, as many can attest, betting against the Bezos often doesn't fare well.