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.
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).
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.”