The firms said that as a combined company, they will be able to pool their know-how, compete with state-owned players and well-funded competitors, leverage synergies in operations, share technology and further invest in “consumer-centric and sustainable last-mile delivery services for the eCommerce sector,” according to a Monday (Sept. 19) press release.
The deal is subject to Swedish regulatory approval, and the combined company is valued at 18 billion Swedish krona ($1.7 billion), the release stated.
Instabox delivers to smart, automated parcel lockers and homes in Sweden, Norway, Denmark, the Netherlands and Germany. The company’s founder, Alexis Priftis, will become executive chairman of the board of Instabee, per the release.
“I think that this is a great fit between two companies that share a lot of common values,” Priftis said in the release.
Budbee delivers to boxes and homes in Sweden, Finland, Denmark, the Netherlands and Belgium. The company’s founder, Fredrik Hamilton, will become CEO of Instabee, the release stated.
“I have been long term in my plans since the start, and this move is an amazing opportunity to create something truly substantial,” Hamilton said in the release.
The announcement of the planned combination comes five months after Instabox raised $190 million in a growth equity round that valued the company at north of $1 billion.
Read more: Swedish Delivery Firm Instabox Raises $190M
Instabox said at the time that it planned to use the funding to expand throughout Europe, upgrade its tech stack and invest in sustainability.
“The global parcels market continues to grow every year, and Instabox’s lightning-quick, hassle-free and fossil fuel-free shipping set us apart from traditional shipping companies,” Priftis said at the time.
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