Qxpress acquires KorChina Logistics ahead of potential US IPO

QXPRESS, the logistics subsidiary of online marketplace Qoo10, has fully acquired KorChina Logistics Holdings.

Financial details were not disclosed. KorChina is an international freight forwarding and third-party logistics company. Its network spans 17 countries and covers markets including China, Singapore and Japan.

The move comes as Qxpress is said to be weighing an initial public offering in the US as soon as next year, according to reports from Bloomberg, citing sources. A listing in New York could value Qxpress from US$500 million to US$1 billion.

"The expanded demand for cross border e-commerce logistics through rapid expansion of business-to-consumer as well as direct-to-consumer demand will continue to drive further growth for both companies," said Young Bae Ku, chief executive and founder of Qxpress, in an email statement.

Qxpress will be able to take advantage of the expanded geographic scope that Korchina has, as well as the latter's relationship with vendors that will allow for reduced freight and customs related processing costs, the company said.