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Borderfree looks to raise $86 million in an initial public offering

February 19, 2014 12:59 PM
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Borderfree Inc., which provides e-retailers with international shipping services, including displaying shipping fees, duties and taxes to foreign shoppers at checkout, is looking to raise $86.25 million in an initial public offering of stock, according to a filing with the U.S. Securities and Exchange Commission.

Borderfree, which changed its name from FiftyOne Global Ecommerce last year, handles international shipping for at least 37 e-retailers ranked in the 2013 Top 500 Guide. They include Gilt Groupe, No. 49; Crate and Barrel, No. 59; and David’s Bridal Inc., No. 344.

The company plans to list on the NASDAQ exchange under the symbol BRDR. Borderfree reported in its filing more than $110 million in revenue during 2013 and a loss of $654,000. It says it works with more than 150 e-commerce sites, accepts more than 60 currencies and delivers to more than 100 countries and territories.

Borderfree makes money from fees it collects from retailers based on a percentage of their sales generated through Borderfree. Customer contracts typically range from one to four years, followed by one-year renewal periods, according to the SEC filing. It also generates additional revenue from fulfillment services, foreign exchange and other transaction fees. In 2013 it facilitated $448 million in gross merchandise sales volume on behalf of its customers, reaching 76% of the world outside the U.S.

Credit Suisse and RBC Capital Markets are main underwriters for the offering.

 

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