Aramex, the biggest logistics company in the Middle East, has entered into a binding agreement to fully acquire Florida-based MyUS. The cash transaction is valued at USD265 million. and is part of its strategy to expand e-commerce operations,
Subject to closing conditions, the deal will offer benefits to both companies, including operational synergy, shared technology, improved efficiency, and an opportunity to enter new markets, according to a statement issued by Aramex after the deal was announced.
Othman Aljeda, CEO of Aramex, said that the transaction will open new trade routes for both the companies, in addition to increasing trade flow from global trade hubs into the Middle East, a market in which Aramex is a leading player.
He also said that Aramex was acquiring a profitable business and that the transaction was a value-add for the company and its shareholders.
E-commerce, which gained momentum during the Covid-19 pandemic, provided logistics companies like Aramex with a huge surge in demand. On higher revenue and improved global operations, Aramex reported a 3 percent annual rise in net profit. The company’s net profit for the first quarter of 2022 rose to USD12.8 million.
With the re-opening of cross-border travel, and eased pandemic-related restrictions, Aramex had faced slowing demand for e-commerce, as well as rising costs from bottlenecks in the supply chain.
Aramex to expand cross-border operations
In a statement, the company said that the acquisition was in sync with its strategy to expand cross-border operations, and to capitalize on growth opportunities in the global e-commerce sector, valued at USD4 trillion.
MyUS has opened US-based retail channels to international shoppers with a simple process. Members who sign up online are provided with a MyUS shipping address, which they then use to ship their order from US and UK-based retailers.
According to the company, it now has more than 6.6 million members across 220 countries, including Saudi Arabia and the UAE. The company offers a simplified and cost-efficient shipping process, in addition to online order management for its members.
In a statement, MyUS revealed that it ships more than USD292 million in e-commerce purchases annually, and adds hundreds of members every day who sign up to use the company’s international shipping services.
Ramesh Bulusu, Chief Executive Officer of MyUS, said that the acquisition by Aramex was testimony to the strength and future potential of the company. He also said that it reflects the company’s increased footprint in the rapidly evolving global e-commerce market.
He also said that the acquisition will allow MyUS customers and business partners to benefit from Aramex’s international expertise, global network, and scale of operations.
The company said that it would fully disclose the details of the transaction on closing, which is expected in the third quarter of 2022.
