UPS reaches deal to buy TNT Express

UPS is poised to expand in Europe after it inked a deal to purchase TNT Express.

CNNMoney reports that UPS will purchase the logistics and supply chain management company in a deal worth a reported $6.8 billion. UPS was rumored to have been mulling such an agreement with the Europe-based company, and the announcement underscores its commitment to expanding in the continent – even during a time of tepid economic growth on the continent.

Atlanta, Georgia-based UPS will pay roughly $12.50 in cash per share for TNT Express. That figure represents a jump of more than 50 percent since negotiations between the two firms began on February 16. Though the price tag is steep, experts said the move would give UPS an advantage in strategic sourcing, among other divisions.

UPS will expand its presence in Europe, Latin America and Asia with its latest acquisition, according to the news provider. UPS currently derives approximately 26 percent of its total revenue outside of the U.S., but company executives said they are hoping the deal would help that figure rise to 35 percent.