Singpost continues acquisition spree, buys majority stake in US e-commerce logistics provider Jagged Peak

Visual from SingPost

Singapore Post, which counts Alibaba Group Holding as its second-biggest shareholder, has reached a deal to buy a little over 71% stake in Jagged Peak, Inc (Jagged Peak), a US eCommerce logistics enabler for high-velocity consumer products for $15.8 million.

The deal will see SingPost’s eCommerce footprint that includes its technology platforms and fulfilment service networks get a global footprint linking the continents of Asia, Australia, continental North America and Europe, the company said.

Jagged Peak had reported revenues of approximately $61.7 million for the fiscal year ended December 2014.

This marks the latest in a series of acquisitions as Singpost expands services and operations globally, as it aims to ride e-commerce wave that is resulting in the the online purchases boom both in this region and also across the US and Europe. The SGX-listed company is also investing heavily in e-commerce and digital businesses in order avoid the fate of traditional postal companies across the region that are fighting for survival.

RelatedSingPost unit buys 80% of FPS Rotterdam for $9.2m

Alibaba to invest S$187.1m in SingPost, to raise stake to 14.51%

Singpost acquires 30% in Australian e-commerce Hubbed for $3.32m

In August this year, Singapore Post has acquired two Hong Kong based companies – it has subscribed to one million new shares in Hong Kong’s E Link Station for HK $8 million, representing 50 per cent of the issued shares, and acquired a 33 per cent stake in Hong Kong’s Morning Express & Logistics for HK$39.6 million (S$7.2 million).

In July, SingPost announced that its subsidiary, Famous Holdings Pte Ltd, has acquired 80 per cent stake in Rotterdam Harbour Holding BV (FPS Rotterdam), for 8.4 million Euros ($9.2 million). In the same month, the Alibaba Group had invested S$187.1m in SingPost, raising its stake in the Singapore company to 14.51 per cent.

In June, Singapore Post had invested A$4.3 million ($3.32 million) in cash for a 30 per cent stake in Australian e-commerce company Hubbed Holdings. That acquisition was indirectly made via wholly-owned subsidiary Quantium Solutions (Australia).

Also Read: SingPost continues acquisition spree, picks up stake in two HK companies

Singapore Post tests drone mail service

Lim Ho Kee, Chairman of SingPost, said, “As SingPost pioneers and leads eCommerce logistics in Asia Pacific, we are casting our eyes beyond the region. Jagged Peak can enable end-to-end fulfilment of eCommerce orders across the US. SingPost is excited about this capability. This transaction is also part of our strategy to focus our resources on strengthening our geographical reach and the technology we employ as an eCommerce logistics company.”

Wolfgang Baier, Group Chief Executive Officer of SingPost, said, “This acquisition will ‘connect the dots’ and make our eCommerce logistics network global. The acquisition of Jagged Peak allows us to use their state-of-the-art eCommerce omni-channel technology to enable brands and retailers not only to leverage their warehouse facilities in over 20 locations in the US but expand these services into our Asia Pacific warehouse network. A win-win for existing and future customers. We have planted the seeds with this investment of what will be SingPost’s global multi-channel B2B4C eCommerce logistics platform.”

 

Related: Trikomsel and SingPost form JV to tap e-commerce opportunities in Indonesia

SingPost acquires 90% stake in Famous Pacific

Forbes: Singapore Post’s Digital Makeover Creates A New E-Commerce Leader

Singapore Reporter/s

In Singapore, we are looking to double our reporting team by this year-end to comprehensively cover the fast-moving world of funded startups and VC, PE & M&A deals. We want reporters who can tell our readers what is really happening in these sectors and why it matters to markets, companies and consumers. The ability to write precisely and urgently is crucial for these roles. Ideal candidates must have to ability to work in a collaborative, dynamic, and fast-changing environment. We want our new hires to be digitally savvy and ready to experiment with new forms of storytelling. Most importantly, we are looking for hard-hitting reporters who work well in a team. Collaboration and collegiality are a must.

Following vacancies can be applied for (only in Singapore).

Following vacancies can be applied for (only in Singapore).   

  • A reporter to track companies/startups that have raised private capital, and have the potential to become unicorns. SEA currently has over 40 companies with a valuation of over $100 million and under $1 billion.
  • A reporter who can get behind the scenes and reveal how funding rounds are put together, or why they’ve failed to materialise. She/he in this role will largely focus on long-format stories. 
  • A journalist to track special situations funds, distressed debt and private credit (from the PE angle) across Asia.

Singapore Reporter/s

In Singapore, we are looking to double our reporting team by this year-end to comprehensively cover the fast-moving world of funded startups and VC, PE & M&A deals. We want reporters who can tell our readers what is really happening in these sectors and why it matters to markets, companies and consumers. The ability to write precisely and urgently is crucial for these roles. Ideal candidates must have to ability to work in a collaborative, dynamic, and fast-changing environment. We want our new hires to be digitally savvy and ready to experiment with new forms of storytelling. Most importantly, we are looking for hard-hitting reporters who work well in a team. Collaboration and collegiality are a must.

Following vacancies can be applied for (only in Singapore).

Following vacancies can be applied for (only in Singapore).   

  • A reporter to track companies/startups that have raised private capital, and have the potential to become unicorns. SEA currently has over 40 companies with a valuation of over $100 million and under $1 billion.
  • A reporter who can get behind the scenes and reveal how funding rounds are put together, or why they’ve failed to materialise. She/he in this role will largely focus on long-format stories. 
  • A journalist to track special situations funds, distressed debt and private credit (from the PE angle) across Asia.