As part of its Eastern Europe expansion strategy, FedEx Corp. (NYSE: FDX) said Thursday that it has signed an agreement to acquire Flying-Cargo Hungary Kft., its Hungarian global service participant.

Financial terms of the agreement were not disclosed.

The privately held company will become a wholly-owned business of the FedEx Express division. FedEx says day-to-day operations at Flying Cargo will remain unchanged for the foreseeable future. The firms have been partners since 2003.

Due to increased demand from global customers, opportunities offered by local economic development, and most importantly, the outstanding team on the ground delivering services, the decision to acquire Flying-Cargo was seen as the next logical step in the ongoing development of our business in Hungary,' said Robert W. Elliott, president of FedEx Express.

FedEx Express began operations in Hungary in 1990 using global service providers. It now serves more than 220 countries and territories.

Shares of FedEx gained 71 cents, or 0.66 percent, to close at $108.82 in Thursday trading on the New York Stock Exchange. The Exchange was closed on Friday in observance of Good Friday.

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