Singapore Post (SingPost), Singapore’s postal service provider, said Thursday that it is selling two U.S. ecommerce vendors it owns—TradeGlobal and Jagged Peak Inc.—in an effort to focus on its home market of Singapore.
TradeGlobal offers a range of ecommerce services to merchants, including website development, digital marketing, creative services, omnichannel order management, fulfillment, logistics and customer service. It specializes in fashion, beauty and lifestyle brands. Its clients include Tory Burch LLC, No. 118 in the Internet Retailer Top 1000, New Avon LLC (No. 327), Speedo and Titlist.
Jagged Peak sells an ecommerce platform and order management system. Its customers include LVMH (No. 131), and Marc Jacobs.
“We will step up our investment to better serve our home market in Singapore, as well as leverage our competitive advantages in Asia-Pacific,” said Paul Coutts, group CEO at SingPost. SingPost says its non-U.S. business units will not be affected by the divestment.
SingPost purchased a 96.3% stake in Cincinnati-based TradeGlobal for $168.6 million in cash in 2015. That same week, it acquired 71.1% of Jagged Peak for $15.8 million.
SingPost provides mail and logistics solutions in Singapore and around the world and operates in 19 markets.
“We see this divestiture as a sign the company is redirecting focus to its mail delivery,” says Arthur McManus, senior vice president of FitForCommerce, a digital and omnichannel consultancy. “A number of service lapses, in what should be the company’s core competency, have recently hit the public spotlight. Divesting the ecommerce and digital marketing companies acquired several years ago will allow Singapore Post to concentrate on improving mail delivery services throughout Asia. What will be interesting would be to see what the long-term plans are for TradeGlobal and Jagged Peak.”
Singapore Post did not immediately respond to a request for additional comment.Favorite