FedEx Corp. said Wednesday it has agreed to acquire ShopRunner, the e-commerce platform that connects online shoppers with merchants and brands.
The parties anticipate the acquisition to close by the end of the calendar year, subject to customary closing conditions, including regulatory approval. Terms of the deal weren’t disclosed.
Headquartered in Chicago, ShopRunner will operate as a subsidiary of FedEx Services. ShopRunner believes their capabilities will complement and expand the FedEx e-commerce portfolio and looks to create increased value for both merchants and consumers.
ShopRunner connects millions of consumers to more than 100 brands and offers a seamless shopping experience across merchants. Among the ShopRunner benefits to members are free two-day shipping, free returns, member-exclusive discounts, and seamless checkout. ShopRunner’s data-driven marketing and omnichannel enablement capabilities also help merchants acquire high-value customers and accelerate their digital innovation by using ShopRunner’s e-commerce platform.
“The acquisition, once closed, aligns with our continued efforts to create an open, collaborative e-commerce ecosystem that helps merchants deliver seamless experiences for their customers,” said Raj Subramaniam, president and chief operating offer of FedEx Corp. “We are committed to growing the ShopRunner platform and combining it with our global digital and logistics intelligence to create new possibilities in e-commerce.”
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Sam Yagan, chief executive officer of ShopRunner, said, “In pursuit of our purpose of creating the future of retail, we have built the foundation of a cross-brand ecosystem to create a simple shopping experience for consumers and to aggregate the scale of our network for our partners’ benefit. The unparalleled reach and assets of FedEx will accelerate our existing capabilities and align with our goal of creating new products and services that advance a more open, collaborative e-commerce ecosystem.”
Once the deal is closed, it is expected that ShopRunner’s pre-purchase offerings added to FedEx’s post-purchase logistics intelligence will enable merchants to attract and engage consumers at scale by providing an innovative online shopping experience. It also anticipates that ShopRunner’s consumer experiences and omnichannel enablement capabilities will aid FedEx as it continues to use data and technology to transform the end-to-end commerce experience.
ShopRunner, which began in 2010, has over 100 network partners including Hudson’s Bay Co., Kate Spade & Co., Under Armour, CB2, Cole Haan, and American Eagle Outfitters. ShopRunner’s team of e-commerce experts are backed by Kynetic, Alibaba Group and American Express.
FedEx, which has global annual revenues of $71 billion, has a broad portfolio of transportation, e-commerce, and business services.
Evercore is serving as exclusive financial adviser and Morgan, Lewis & Bockius is serving as legal adviser to ShopRunner.
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