Advent International is considering a sale of Polish postal locker provider InPost SA, according to people familiar with the matter.

The private equity firm is working with Citigroup Inc. on options for the business, the people said, asking not to be identified discussing confidential information. A sale could value InPost at more than 2 billion euros ($2.3 billion), the people said.

Deliberations are at an early stage, and Advent hasn’t decided how much it will seek for the business, according to the people. A representative for Advent declined to comment. Representatives for Citigroup and InPost did not immediately provide comment.

InPost allows customers to arrange for the delivery and collection of parcels across a network of self-service lockers. The company has more than 8,000 lockers in Poland and also offers courier services. Advent acquired the business in 2017 as part of a push into the e-commerce market. In 2018, InPost secured additional financing from private equity firm KKR & Co. 

Any transaction would add to the $470 million of deals targeting Poland’s technology sector this year, according to data compiled by Bloomberg. Deal volumes across eastern Europe have risen 51% in 2020, the data show, making the region one of the few to be thriving amid a broader downturn in mergers and acquisitions brought on by the Covid-19 pandemic.

Demand for tech assets in Poland has been highlighted this week by Allegro, the e-commerce platform planning what’s expected to be one of the country’s biggest-ever initial public offerings at as much as 8.1 billion zloty ($2.1 billion).

Allegro, backed by Cinven, Permira and Mid Europa Partners, is tapping the market amid a surge in technology and online retail shares, which have been buoyed by customer demand during the lockdowns caused by the pandemic. InPost offers users of Allegro special deals when sending parcels via its network, according to its website.

Source: Bloomberg

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