Aramex completes $265 million acquisition of MyUS
Value accretive deal for Aramex with potential to unlock further value over long-term through revenue & cost synergies.
UAE-based Aramex has obtained all the necessary regulatory approvals and completed the acquisition of Access USA Shipping, LLC (MyUS), a global technology-driven platform that enables cross-border e-Commerce, for an all-cash purchase price of approximately $265 million.
"The transaction marks Aramex's largest acquisition to date," says an official release.
"MyUS will be fully integrated into Aramex's business, operating as a business unit within the company's courier business segment. MyUS will retain its brand name and will be complementary to Shop & Ship, Aramex's subscription-based last mile e-Commerce solutions platform."
The acquisition will further strengthen Aramex's cross-border express business by increasing shipment volumes, growing and diversifying its customer base, and expanding coverage in new origins and destinations, the release added. The transaction is also expected to be immediately value accretive for Aramex, providing strong growth in revenue, attractive profitability and superior cash conversion.
"With the successful close of our largest strategic acquisition to date, Aramex has become an even more competitive player in the cross-border e-commerce space," says Othman Aljeda, Chief Executive Officer, Aramex. "Given how complementary MyUS's business is to ours, we believe our wider stakeholder universe will realise the immediate and long-term positive benefits of this acquisition. Our shareholders will immediately see the impact on financial performance, and over the long-term we can unlock further value through operational and cost synergies. As we start the integration process, I would like to extend a warm welcome to MyUS's employees and customers and look forward to growing further, together."
Ramesh Bulusu, Chief Executive Officer, MyUS, adds: "We at MyUS are excited to begin a new chapter of growth with Aramex. We are ready to take our products and solutions to new markets by leveraging Aramex's extensive global network, scale, knowledge and expertise in markets exhibiting very attractive characteristics such as the MENA region, the U.K. and Australia. Together with Aramex, we will work on developing a joint business plan to unlock revenue and operational synergies to help grow the cross-border e-commerce business and bring customers the best solutions and services. Ultimately, our goal under Aramex's ownership is to accelerate our growth in a fragmented multi-trillion-dollar global e-commerce market."
MyUS generated more than $100 million revenue in 2021, and delivered 1.1 million packages to customers who shop from retailers based in the U.S., U.K. and China. The company has about 180,000 active customers, and 300 employees, the majority of who are based in the U.S.