Stamps.com Stock Increases Over 60% Pre-Market: Why It Happened

By Amit Chowdhry ● July 9, 2021
  • The stock price of Stamps.com Inc. (NASDAQ: STMP) increased by over 60% pre-market. This is why it happened.

The stock price of leading e-commerce shipping solutions company Stamps.com Inc. (NASDAQ: STMP) increased by over 60% pre-market. Investors have been responding to Stamps.com to the company announcing 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.

Under the terms of the deal, Stamps.com stockholders will receive $330.00 per share in cash representing a premium of 67% over the company’s closing share price on July 8, 2021, the last full trading day prior to the transaction announcement. And the premium is 71% over the company’s 3-month volume-weighted average closing share price through July 8, 2021. 

Upon the completion of the deal, Stamps.com will become a private company with the flexibility and resources to continue to provide global e-commerce tech solutions. Plus Stamps.com will benefit from the operating capabilities, capital support, and deep sector expertise of Thoma Bravo.

Stamps.com’s Board of Directors unanimously approved the agreement with Thoma Bravo. The agreement includes a 40-day “go-shop” period expiring August 18, 2021 — which allows the Board and its advisors to actively initiate, solicit, and consider alternative acquisition proposals from third parties. The Board is going to have the right to terminate the merger agreement to enter into a superior proposal subject to the terms and conditions of the merger agreement.

The deal is expected to close in the third quarter of 2021, subject to customary closing conditions, including approval by Stamps.com stockholders and receipt of regulatory approvals. And upon closing of the transaction, the company’s common stock will no longer be listed on any public market.

KEY QUOTES:

“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. This transaction is a testament to the excellence and hard work of all of our employees and their relentless dedication to our customers and partners throughout the world.”

— Ken McBride, Stamps.com’s Chairman and CEO

“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.”

— Holden Spaht, a Managing Partner at Thoma Bravo

“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. 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.”

— Brian Jaffee, a Principal at Thoma Bravo