BRDR Will Continue To Operate Independently, According To RBC

In a report published Wednesday, RBC Capital Markets analysts maintained a Sector Perform rating on

, while raising the price target to $14. Borderfree is being acquired by

for $14 per share in an all cash transaction. Borderfree's management expects the deal to accelerate business growth driven by Pitney Bowes' expertise in technology, commerce and logistics. The two companies will continue to operate independently until the closure of the deal. Borderfree reported robust 1Q results, with total revenues ahead of the RBC estimates and the company's own guidance. Gross margin expansion and sales and marketing leverage enabled the company to post lower-than-expected EBITDA loss of $1.4 million for the quarter. Although Borderfree continues to be a leading service provider for US online retailers wishing to expand overseas, its performance has been negatively impacted by currency headwinds. "The company is counting on BFX (its accelerated implementation process), its emerging AliPay partnership, and new International launches to help recover growth in H2:15," the analysts mentioned.