China-based ecommerce solutions provider eCargo has acquired local ecommerce agency Amblique, whose clients include Cotton On, Michael Hill and Sportscraft.
eCargo Holdings Limited (ASX:ECG) has announced that its wholly owned subsidiary, eCargo Enterprise Limited, has entered into a Share Purchase Agreement to acquire 100 percent of Australian e-commerce consultancy Amblique Pty Limited, providing an expanded service and solution offering to eCargo’s existing retail and fashion merchants.
Founded in 1999, Amblique is one of Australia’s most prominent e-commerce service providers of omnichannel strategies, retail practice and site optimisation services to help retailers and brand owners sell more. The company has a 15 year profitable track record, currently serving a diverse range of merchants, including Cotton On, Michael Hill International, Sportscraft, Matt Blatt and Tarocash amongst numerous others.
“We are hugely excited about the opportunities this new partnership will enable for our customers.” said Justus Wilde, founder of Amblique. “E-commerce success is driven by customer experience. We are now able to combine our Demandware storefront solution with logistics and marketplace automation on a global scale. Every merchant is chasing growth and we expect the China e-commerce market to be five times larger than the summation of the next five markets by 2020. Our China entry solution will make this opportunity accessible and provide local expertise and resources.”
The acquisition for A$6.0 million will be fully funded from eCargo’s existing cash reserves and expected to be earnings accretive in FY2015.
“We are very excited to announce our first acquisition since listing late last year as a key component of our expansion strategy to acquire complementary businesses and capabilities,” commented John Lau, Executive Chairman of eCargo. “The combination of Amblique’s Demandware and enterprise solution expertise in Australia and New Zealand with eCargo’s eCommerce platform solutions, China eCommerce and global supply chain capabilities will immediately enable eCargo to provide an expanded service and solution offer to our existing Australian retail and fashion customers.”
Today’s announcement follows the recent announcement by eCargo of a strong quarterly revenue performance having generated revenue of A$3.7 million, well ahead of forecast revenue of A$2.3 million for FY2014.
Amblique currently employs a team of about 50 based in Sydney and operates a development team of 12, based in Ho Chi Minh, Vietnam. Amblique will continue to operate under its current name as a wholly owned subsidiary of eCargo Enterprise. The existing Amblique management team will remain in place, led by Amblique Founder, Justus Wilde and Managing Director, Jason Byrne.
According to Christopher Lau, CEO of eCargo: “Justus and Jason have built a great organisation serving many well-known retail and fashion brands in Australia and helping these brands develop and expand their online sales. Amblique bring a strong Australian-based team to enhance our ability to deliver e-commerce enterprise solutions to our brand principals in the region. We are very pleased to have Justus, Jason and the Amblique team become a part of our ecosystem at eCargo.”
Amblique will remain focused on providing Demandware solutions to branded manufacturers and retailers. Amblique plans to leverage the eCargo digital commerce ecosystem to expand its Demandware practice to service potential customers in China, South East Asia, South Africa and the United Kingdom. For merchants with end-to-end requirements, Amblique will integrate the Demandware storefront with eCargo’s proprietary eCoreOS eCommerce platform to provide integration with major eCommerce marketplaces, including TMall and JD.com, and seamless access to its global supply chain network and capabilities.
It is expected by eCargo that the Share Purchase Agreement shall be completed during February 2015.