SINGAPORE - Singapore Post is buying US e-commerce provider TradeGlobal - which serves leading fashion, beauty and lifestyle brands - for US$168.6 million (S$236 million).
SingPost said on Thursday (Oct 15) 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 US, while TradeGlobal's customers will have access to the fast growing e-commerce market in the region, said the company.
SingPost chief executive officer Wolfgang Baier said the acquisition will continue the transformation of the company and turn it into a global e-commerce player covering two-thirds of the geographical market.
"It is connecting the dots to become a digital company. We are a global player" he said.
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 said the about 28 per cent of the company's revenues are derived from e-commerce and the new acqusition will mean that the combined company will handle US$3 billion worth of goods in their operations.
Asked if the firm is look for further acquisitions to cement their position, Dr Baier said he is happy with the company covering two-thirds of the market today.
The focus for the compay now is on integration and reaching out to their customers on the expanded network they have to make what they have 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.
Said its chairman Mr Lim Ho Kee: "Our investment in TradeGlobal makes sense for us in many ways. Together with TradeGlobal, SingPost can establish stronger market leadership and have a larger talent pool to drive a global e-commerce strategy. We will also be looking at a larger and deeper footprint. Increasingly, we need to take a 'one world' approach towards e-commerce."
The founders of TradeGlobal, executive chairman Dave Cook and and chief executive officer Dave Eckley, will continue in their current positions as executives and shareholders.