SingPost takes control of US eCommerce co
SingPost, Singapore’s national postal service, is continuing to build its international portfolio of eCommerce businesses, now adding US-based Jagged Peak to the lineup.
The company says the purchase continues its “aspirations of building an end-to-end eCommerce logistics network and technology platform”.
Wholly owned subsidiary, SP Jagged Peak LLC, has entered into an agreement to acquire a 71.1 per cent equity stake in Jagged Peak, a US eCommerce logistics enabler for high-velocity consumer products for US$15.8 million (or approximately S$22.5 million).
SingPost says it intends to invest in Jagged Peak’s eCommerce logistics infrastructure, processes and technology to help customers maximise their business potential globally. The company says the investment will open the way for its customers to grow not only across Asia Pacific but into the US and beyond seamlessly with one eCommerce logistics solution provider.
Lim Ho Kee, SingPost chairman, said: “As SingPost pioneers and leads eCommerce logistics in Asia Pacific, we are casting our eyes beyond the region. Jagged Peak can enable end-to-end fulfilment of eCommerce orders across the US.
“SingPost is excited about this capability. This transaction is also part of our strategy to focus our resources on strengthening our geographical reach and the technology we employ as an eCommerce logistics company.”
Dr Wolfgang Baier, group CEO, added: “This acquisition will ‘connect the dots’ and make our eCommerce logistics network global. The acquisition of Jagged Peak allows us to use their state-of-the-art eCommerce 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.
“It’s a win-win for existing and future customers. We have planted the seeds with this investment of what will be SingPost’s global multi-channel B2B4C eCommerce logistics platform.”
Jagged Peak reported revenues of approximately US$61.7 million (or approximately S$83.5 million) for the fiscal year ended December 2014.