ADA, an e-commerce and data analytics subsidiary of Malaysian telco Axiata Group Berhard, has acquired Singapore Post's (SingPost) e-commerce operations.
The Malaysia-based integrated end-to-end e-commerce company said the acquisition would boost its plan to provide end-to-end integrated services in Asia Pacific regions for clients like Timberland, Anta and Landmark Group SEA, among others.
While the financial terms of the deal remain undisclosed, it includes SingpPost's units, assets and staff, thus increasing ADA's headcount to 300.
The deal is also expected to give ADA a competitive edge in capability, client portfolio, talent, and integrated services and is expected to deepen the partnership in distribution and logistics.
It will allow ADA to offer clients fully integrated services in Malaysia, Singapore, Indonesia, Thailand, the Philippines, Sri Lanka, Bangladesh, Cambodia, Vietnam and South Korea, the company said.
Srinivas Gattamneni, ADA's CEO, said the addition of SingPost's e-commerce arm “marks a milestone” in ADA’s e-commerce practice expansion plans as it ramps up its “end-to-end solutions with enhanced technical expertise and services”, complementing it with its integrated services of combining media, creative, and analytics.
Gattamneni said the acquisition will help ADA tap into the region's “phenomenal e-commerce growth rate” and anticipated gross merchandise value (GMV) of US$234 billion by 2025.
SingPost's SVP for customer engagement and commercial, Koh Jin Kiat said e-commerce has a high level of penetration in Southeast Asia, and “this proportion will only set to grow from here”.
He added: “This deal is only the start of a strategic partnership with ADA, and we look forward to complementing their business with our wide suite of e-commerce logistics solutions within the Asia Pacific region, making it a win-win for both firms as our clients will get to scale up their operations with ADA's integrated offerings”.
In its earnings report for the fiscal year ending March 31, 2022, SingPost said domestic e-commerce logistics volume grew 19 percent and 24 percent in the second half and the full year.
Domestic e-commerce logistics now account for 40 per cent of SingPost’s domestic revenue, up from 32 percent last year.