FedEx keeps rolling with acquisitions, snaps up Bongo International
FedEx has had a big week, from its announced acquisition of reverse-logistics firm GENCO to an increase of profits and revenues in 2014. The latest good news to come from its Memphis headquarters is the purchase of Bongo International, an international delivery solutions firm that will help the company boost its capabilities shipping parcels around the world.
Bongo is a company that sports more than 250,000 clients and 2,000 retail partners, according to a FedEx press release. While international delivery was one of the major market segments where FedEx boosted profits this year, the company clearly isn't finished building out its services. Bongo offers assistance with customs, compliance, money conversion, fraud protection and tax/fee estimations for packages shipped between countries.
Headquartered in St. Petersburg, Florida, Bongo will operate as a subsidiary of FedEx's growing international shipping section.
"Bongo International's end-to-end cross border enablement capabilities will greatly enhance the FedEx portfolio of global e-commerce solutions and provide customers with unmatched flexibility to establish and expand their international business and customer base," said Michael Glenn, FedEx Corporation Executive Vice President, Market Development and Corporate Communications.
The two acquisitions this week present a couple of lessons for entrepreneurs looking to sell their companies. First, acquisition strategy can have multiple parts, with several mergers designed to help a corporation grow in separate target areas. Second, the rise of ecommerce around the world demonstrates that FedEx's recent purchases are driven by an evolving marketplace with ever-more-demanding customer expectations for service and quality assurance.
With strong growth figures for 2014, FedEx is now primed to achieve further success in expanding its presence around the world. Bongo could ultimately have shareholders and customers heralding a major "bingo."