EL SEGUNDO, CA -- (Marketwired) -- 07/01/16 -- Stamps.com ® (NASDAQ: STMP) today announced it has completed its acquisition of ShippingEasy, Inc., an Austin, Texas based company that offers web-based multi-carrier shipping software that allows online retailers and e‑commerce merchants to organize, process, fulfill and ship their orders quickly and easily.
Stamps.com purchased ShippingEasy for approximately $55 million in cash funded from existing cash and investments. Stamps.com plans for ShippingEasy to operate as a wholly owned subsidiary, led by its existing management team.
Stamps.com made performance based inducement equity awards to Katie May, who will serve as General Manager of ShippingEasy, and Barry Cox, who will serve as Chief Technology Officer of ShippingEasy, in connection with the acquisition. These inducement awards cover an aggregate of up to 43,567 common shares each to Ms. May and Mr. Cox if earnings targets for ShippingEasy are achieved over a two and one-half year period beginning July 1, 2016. The awards are subject to proration if at least 75% of the applicable target is achieved and are subject to forfeiture or acceleration based on changes in employment circumstances over the performance period. The awards are a material inducement to Ms. May and Mr. Cox entering into employment agreements with Stamps.com in connection with the acquisition.
Stamps.com also made inducement stock option grants for an aggregate of 62,000 shares of Stamps.com common stock to 48 new employees in connection with its acquisition of ShippingEasy. Each option vests 25% on the one year anniversary of the grant date and the remaining 75% vesting in approximately equal monthly increments over the succeeding thirty-six months provided that the option holder is still employed by the Company on the vesting dates. The stock options have a ten year term and an exercise price equal to closing price of Stamps.com common stock on the grant date of July 1, 2016. The stock options were granted as inducements material to the new employees entering employment with Stamps.com.
Stamps.com's Board of Directors and Compensation Committee unanimously approved these inducement awards in connection with the ShippingEasy acquisition. The awards were granted without stockholder approval in accordance with Nasdaq Listing Rule 5635(c)(4).
Stamps.com (NASDAQ: STMP) is the leading provider of postage online and shipping software solutions to approximately 650,000 customers, including consumers, small businesses, e‑commerce shippers, enterprises, and high volume shippers. Stamps.com offers solutions that help businesses run their shipping operations more smoothly and function more successfully under the brand names Stamps.com, Endicia, ShipStation and ShipWorks. Stamps.com's family of brands provides seamless access to mailing and shipping services through integrations with more than 400 unique partner applications.
ShippingEasy is a leading web-based shipping software solution that allows online retailers and e‑commerce merchants to organize, process, fulfill and ship their orders quickly and easily. ShippingEasy integrates with leading marketplaces, shopping carts, and e‑commerce platforms to allow order fulfillment and tracking data to populate in real time across all systems. The ShippingEasy software downloads orders from all selling channels and automatically maps custom shipping preferences, rates and delivery options across all supported carriers.
"Safe Harbor" Statement under the Private Securities Litigation Reform Act of 1995: This release includes forward-looking statements about our anticipated results that involve risks and uncertainties. Important factors, including the Company's ability to complete and ship its products, maintain desirable economics for its products and obtain or maintain regulatory approval, which could cause actual results to differ materially from those in the forward-looking statements, are detailed in filings with the Securities and Exchange Commission made from time to time by STAMPS.COM, including its Annual Report on Form 10-K for the year ended December 31, 2015, Quarterly Reports on Form 10-Q, and Current Reports on Form 8-K. STAMPS.COM undertakes no obligation to release publicly any revisions to any forward-looking statements to reflect events or circumstances after the date hereof or to reflect the occurrence of unanticipated events.
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