The acquisition will create the world's biggest logistics, sea and air freight group.
Deutsche Post, which already owns courier DHL, will be paying approximately 72 per cent of the purchase price in cash and the rest in new shares to Exel.
The UK company has a turnover of£6.3 billion and facilities in more than 135 countries. The acquisition will give Deutsche Post the opportunity to expand beyond the German market.
Deutsche Post boss Klaus Zumwinkel said: 'Through the combination of Exel and the logistics of the Deutsche Post World Net, we will create an unprecedented international presence.'
Exel customers include Boots, Burberry, and Procter & Gamble.