Dubai: Dubai-listed Aramex has spent A$33 million (Dh114 million) to buy an Australian courier company in order to replicate the acquisition’s technology across its global e-commerce portfolio.
The technology, “WantItNow,” uses countdown technology and three hour and evening e-commerce delivery offerings.
The acquisition of the Melbourne and Sydney metro-focused Mail Call Couriers, funded by internal cash, is part of Aramex’s “aggressive expansion strategy.” It also gives Aramex access to Mail Call Couriers “active client” list of more than 7000.
Aramex stated that the “new acquisition strengthens Aramex’s Asia-Pacific proposition and provides Aramex with important, technology-driven capabilities in Australia.”
The deal follows Friday’s announcement by Australia Post, the national postal company, that it is axing 900 jobs, or 23 per cent of head office and administration staff.
Australia Post Managing Director and Chief Executive Ahmad Fahour stated that the changes are due to the “dramatic impact of a declining letters service and an increasingly competitive parcels market.”
Australia Post will also split its operations, separating its parcel and logistics business from its letter and retail division. The Australian-government-owned company said that reform is critical to its future.
Hussain Hachem, Aramex chief executive, said in an emailed statement to Gulf News that “there will be no job cuts” at Mail Call Couriers.
“Aramex will be leveraging on Mail Call staff’s local expertise and knowledge,” he added.
However, the brand and reputation of the 32-year-old Australian company could be set for a change.
“Rebranding decisions might be considered once full integration has been achieved,” Hachem said.
In Sunday’s earlier statement, Hachem said the acquisition “offers some exciting opportunities to further develop and grow our e-commerce proposition across the Asia pacific region.”
Aramex will replicate Mail Call Couriers “WantItNow” technology across its global e-commerce markets. The delivery solution uses countdown technology and three-hour and evening e-commerce delivery offerings.
“The company has a very strong track record and an excellent management team and we are excited to support its next phase of growth,” Hachem stated.
The “WantItNow” technology appears to have been a major force behind the deal. Hachem stated that “Aramex remains very bullish on the acquisition providing significant momentum to its Asia Pacific e-commerce proposition” despite Australia Post’s bearish outlook.
On Sunday, Mail Call Couriers website still said that it “is proudly 100 per cent Australian owned and operated.”
Emma Cronin, Mail Call Couriers Joint Managing Director, stated that its customers will still be “able to enjoy our personalised, tailored services” despite the change in ownership.
Aramex shares closed up 1.23 per cent to Dh3.25 on the Dubai Financial Market (DFM) on Sunday.