SmartMail Services Signs Merger Agreement With Deutsche Post Global Mail USA
Atlanta, GA -- May 11, 2004 -- SmartMail Services, the leading nationwide expeditor of flat-sized mail and lightweight parcels, has reached an agreement to be acquired by Deutsche Post Global Mail USA (DPGM), a leader in international mail services. The deal extends the existing relationship between the two companies and will offer U.S. direct mailers and merchants a single source for domestic and international shipping needs. "The Deutsche Post Global Mail acquisition is exciting for the company and our customers," said Jim Martell, CEO of SmartMail Services. "Our relationship with Global Mail started as a partnership, so it is a very natural step that we should join forces to better serve our customers."
Matthew Vettel, Chairman of SmartMail and Partner at Great Hill Partners, stated, "We are very pleased to enter into this agreement with Deutsche Post Global Mail. Jim Martell and the SmartMail team built a national delivery network to service Fortune 1000 companies while achieving impressive financial results. The acquisition of SmartMail by DPGM is a real tribute to our management team."
Headquartered in Atlanta, Georgia, SmartMail delivers mail by utilizing the United States Postal Service's (USPS) workshare program. The workshare program was created in 1976 and allows private companies to work with the USPS. Workshare partners do not deliver the mail, but take it from the customer to local USPS distribution centers where it is then delivered to the addressee by regular mail carriers. The U.S. General Accounting Office estimates that the workshare program saves USPS more than $16 billion each year, which in turn is passed on to the public in the form of lower postage.
In 1999, Great Hill Partners, a Boston-based private equity firm and majority owner of SmartMail, acquired the company and provided the initial capital for expanding SmartMail's service offering. A subsequent equity financing in September 2000 was led by Monitor Clipper Partners and included Bridge East Management, Landmark Partners and Saugatuck Capital Partners.
SmartMail Services generates in excess of $200 million of revenue with 1000 employees across 17 locations in the U.S. The straightforward customer value proposition of cost savings and sophisticated tracking/tracing has enabled 20-25% revenue growth per year over the past 5 years. "I am thankful to the SmartMail team of employees for what they have accomplished and I look forward to our continued success with our new partners," stated Jim Martell, CEO of SmartMail Services.
About SmartMail Services
SmartMail Services offers high-volume mailers and shippers budget ground and expedited delivery services for Flats, Catalogs Media Mail, Bound Printed Matter, and Parcel packages. With an expansive domestic footprint of 16 processing facilities nationwide, SmartMail Services meets delivery commitments while yielding reductions in both operational costs and postage fees for its customers. Value-added services include address verification, ZIP code correction, online tracking and reporting, and selective routing. For more information, visitwww.smartmail.com.
About Deutsche Post Global
Deutsche Post Global Mail is a leader in international mail services offering a comprehensive one-stop shop service for fast and reliable cross-border mail delivery. With direct connections in more than 200 countries, Deutsche Post Global Mail, a subsidiary of Deutsche Post World Net, currently operates one of the biggest networks worldwide for cross-border mail transport. Deutsche Post Global Mail USA employs 500 men and women. With its 20 sales offices and 4 production centers it provides full service business mail solutions to 5,000 U.S. customers. For more information, visitwww.globalmail.com.
About Great Hill Partners
Great Hill Partners is a private equity firm that manages over $1 billion in capital and focuses on investing in companies in the education, business services, media, information, IT and communications sectors. Great Hill Partners is currently investing its $460 million fund, Great Hill Equity Partners II, L.P., and is targeting equity investments of $10 million to $50 million. For more information, please visit www.greathillpartners.com.