SingPost boosts e-commerce logistics platform with TradeGlobal acquisition
By Digital News Asia October 21, 2015
- Part of strategy to provide global go-to-market e-commerce solutions
- Combo creates a one-stop global e-commerce solution, says SingPost
SINGAPORE Post Ltd (SingPost), through its indirect wholly-owned subsidiary TG Acquisition Corp, is acquiring 96.3% of TradeGlobal Holdings Inc from TradeGlobal Parent LLC, which is owned by the private equity firm Bregal Sagemount, for US$168.6 million (or approximately S$236 million).
TradeGlobal is a US-based end-to-end e-commerce provider that specialises in fashion, beauty and lifestyle brands.
The founders of TradeGlobal – executive chairman Dave Cook and chief executive officer Dave Eckley – will continue in their current positions as executives and shareholders.
“We are excited about the synergies between TradeGlobal and SingPost,” said Cook.
“The combination of the two companies will enhance our capabilities to build a powerful global e-commerce platform enabling our customers to expand internationally,” he added.
Following this transaction, SingPost’s clients in Asia Pacific would be able to expand their business into the United States, while TradeGlobal’s clients will have access to the e-commerce landscape in Asia Pacific, SingPost said in a statement.
Both companies’ e-commerce platforms and warehouse networks are complementary, which means clients can expect to leverage integrated technology and fulfilment capabilities. This combination creates a one-stop global solution, SingPost claimed.
“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,” said SingPost chairman Lim Ho Kee.
“We will also be looking at a larger and deeper footprint. Increasingly, we need to take a ‘one world’ approach towards e-commerce,” he added.
The TradeGlobal acquisition comes just days after SingPost said it had entered into an agreement to acquire a 71.1% equity stake in US e-commerce logistics enabler Jagged Peak Inc for US$15.8 million (approximately S$22.5 million).
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