Logistics and e-commerce firm Singapore Post is buying US e-commerce provider TradeGlobal - which serves leading fashion, beauty and lifestyle brands - for US$168.6 million (S$233.6 million).
SingPost said yesterday that its indirect wholly owned subsidiary, TG Acquisition Corporation, will acquire 96.3 per cent of TradeGlobal Holdings from TradeGlobal Parent LLC, which is owned by the private equity firm, Bregal Sagemount.
With this acquisition, SingPost's clients in the Asia-Pacific can expand their businesses into the United States, while TradeGlobal's customers will have access to the fast-growing e-commerce market in the region, said the company.
SingPost chief executive Wolfgang Baier said the acquisition will continue the transformation of the company and turn it into a global e-commerce player.
"It is connecting the dots to become a digital company. We are a global player," he said in a conference call with the media.
This is the second US e-commerce firm that SingPost has invested in. Last Friday, SingPost announced that it is acquiring a 71.1 per cent stake in Jagged Peak, a US e-commerce logistics firm, for US$15.8 million.
Dr Baier noted that about 28 per cent of the company's revenues are derived from e-commerce and the new acquisition will mean that the combined company will handle US$3 billion worth of goods in their operations. Asked if there were going to be further acquisitions to cement its position, he said he is happy with the company covering two-thirds of the market today.
The focus for the company now is on integration and reaching out to its customers on the expanded network it has to make what it has a success, added Dr Baier.
SingPost said that as its e-commerce platforms and warehouse networks complement those of TradeGlobal, their clients can expect to leverage integrated technology and fulfilment capabilities. This combination creates a one-stop global solution, it added.
SingPost also said its ability to deliver global scalable solutions will give it a competitive edge in the e-commerce market.