German technology group Körber has acquired Siemens Logistics’ global mail and parcel business for €1.15bn.

Siemens Logistics provides mail and parcel technology and software for global logistics providers. The acquisition should complement Körber’s supply chain offering.

As a European provider with a strong presence in North America and a foothold in the fast-growing Chinese market, the mail and parcel business of Siemens Logistics is well positioned for further growth. The company provides mail and parcel technology and automation for digitised mail and parcel processing for global logistics companies. With around 1200 employees, Siemens Logistics mail and parcel business generates annual revenue of about €500m.

The rise in ecommerce and changing consumer behaviour continue to drive demand for automation and digitisation throughout the entire supply chain, especially in parcel processing. Parcel volumes increase rapidly. At the same time, there is a growing need to cope with higher delivery demands and increased pressure for shorter transportation times that Siemens Logistics’ mail and parcel business addresses with products to support hubs and end-to-end network processes.

With the parcel automation market expected to grow double digit annually in the coming years. Siemens Logistics’ mail and parcel business can benefit from these global trends and ongoing market growth together with Körber’s existing supply chain business.

Körber’s business area supply chain provides companies around the world with integrated software and automation along the entire supply chain. Customers benefit from tailored and seamlessly integrated, supply chain offerings including automation, software, SAP consulting, voice, robotics and material handling.

“Siemens Logistics as a key player in the global courier, express, parcel and ecommerce market is very well positioned with its global customer base,” said Stephan Seifert, CEO of the Körber Group. “With Siemens Logistics’ mail and parcel business, we broaden and complement our market offering as a globally leading partner to the supply chain and ecommerce industry, covering hardware, software, digital and system integration. I am very excited about the combined opportunities of being a leading and trusted partner for the industry and our customers. One thing is certain: We are and will continue to be their technologically leading and reliable partner.”

With the acquisition, Körber will complement its existing supply chain offerings for mail and parcel logistics. Körber is opening a complementary product offering and gaining access to the world’s logistics providers. This creates opportunities for partnerships from which the group’s existing customers can benefit. In turn, the Siemens business should benefit from Körber’s end-to-end supply chain and global system integration capabilities.

“The recent outstanding development of Siemens Logistics’ mail and parcel business demonstrates that our concept for our portfolio companies is enabling us to further develop businesses and make them fit for the future even when they are not part of our core business,” said Ralf Thomas, chief financial officer of Siemens.

Dirk Hejnal, CEO of Körber’s business area supply chain, added: “The team from Siemens Logistics’ mail and parcel business impressively combines machine-based processes with intelligent, digital automation technology creating comprehensive, value-creating solutions for major global logistics players. Siemens Logistics’ expertise in this area will no doubt strengthen our offerings and enhance our technology leadership.”

The transaction is subject to customary closing conditions and regulatory approvals.

“Körber Logistics focuses primarily on food and beverage, non-durable manufacturing and ecommerce,” said Rueben Scriven, senior analyst at Interact Analysis. “The acquisition of Siemens’ mail business will give Körber Logistics a good foot-hold into the parcel segment and Siemens’ conveyor and sorter technology will also bolster Körber’s ecommerce offering.”

Körber has about 10,000 employees across more than 100 locations worldwide.