Siemens Logistics has agreed to sell its mail and parcels business to German technology group Koerber for 1.15 billion euros ($1.31 billion).

Insider report about the sale of Siemens Logistics’s postal business, which recorded annual revenue of half a billion euros, has circulated since November of last year. The airport logistics business, which produces baggage and cargo handling solutions, will remain with Siemens Logistics, the company said. The deal with Koerber is expected to be completed in the current calendar year. 

Körber says the parcel unit, given its strong presence in North America and the Chinese market, will complement its existing supply chain offerings and solutions, including automation, software, SAP consulting, voice, robotics, and material handling.