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SingPost to buy majority stake in US e-commerce logistics firm
Singapore Post has agreed to acquire a 71.1 per cent stake in US e-commerce logistics enabler Jagged Peak for US$15.8 million (S$22.5 million), as it builds an end-to-end e-commerce logistics network and technology platform.
With this acquisition, made through its indirect wholly-owned subsidiary, SP Jagged Peak LLC, SingPost's e-commerce footprint will be global, the firm said on Friday.
Said SingPost chairman Lim Ho Kee: "As SingPost pioneers and leads e-commerce logistics in Asia-Pacific, we are casting our eyes beyond the region....This transaction is also part of our strategy to focus our resources on strengthening our geographical reach and the technology we employ as an e-commerce logistics company."
Jagged Peak recorded revenues of about US$61.7 million for the year ended Dec 2014. The firm's proprietary and accredited e-commerce logistics platform is used by more than 20 warehousing facilities across the US, Canada and Europe.
SingPost said it intends to invest in Jagged Peak's e-commerce logistics infrastructure, processes and technology to help customers maximise their business potential globally.
"This acquisition will 'connect the dots' and make our e-commerce logistics network global. The acquisition of Jagged Peak allows us to use their state-of-the-art e-commerce 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," said SingPost group CEO Wolfgang Brier.
With this investment, SingPost has planted the seeds of a future global multi-channel "B2B4C" e-commerce logistics platform, he added.