United Parcel Service has agreed to acquire Mail Boxes Etc., once again extending its long reach into the package-delivery marketplace.

A subsidiary of US Office Products, Mail Boxes Etc. is a franchiser of independently owned shipping centers. UPS says the transaction will allow the two companies to develop new business in areas such as small business services, e-commerce, and financial services. UPS adds that the acquisition strengthens its ability to serve a growing segment of retail customers, including consumers who make purchases over the Internet and home office owners.

Once the transaction is completed, Mail Boxes Etc. will conduct business through a subsidiary of UPS. UPS did not disclose the amount of the cash transaction.

Mail Boxes Etc., based in San Diego, has more than 4,300 retail locations, including nearly 900 centers in 29 countries around the world. Atlanta-based UPS, the world's largest package-delivery company, reported revenues of $29.7 billion last year.

UPS says it will continue to work with other franchisers, independent shipping and packaging stores, and other small shipping outlets.