India’s first listed e-commerce firm, Infibeam Incorporation, which in May this year had announced to acquire Snapdeal’s subsidiary Unicommerce eSolutions for up to Rs 120 crore in stock, has now terminated the deal.
In a dramatic turn of events, the Ahmedabad-based Infibeam told stock exchanges in a filing on Friday that the share purchase agreement (SPA) has been terminated as the conditions precedent were not fulfilled within the stipulated time period.
In May this year, Infibeam Avenues had announced signing a definitive sales and purchase agreement (SPA) with Unicommerce eSolutions and Jasper lnfotech (the parent of Snapdeal) to acquire 100% in Unicommerce.
It had pointed out that the acquisition would boost its e-commerce enabling capabilities and expand the product offerings for existing clients. The transaction was scheduled to close in three-five months.
According to the May filing, Infibeam was to issue optionally convertible debentures on a preferential basis to Jasper Infotech valued up to Rs 120 crore, subject to shareholders’ approval.
It had then said that Unicommerce eSolutions had a net worth of Rs 24.63 crore and a turnover of Rs 20.27 crore as on March 31, 2018.
In a separate statement, a Unicommerce spokesperson said “both the parties have mutually decided not to give effect to the said agreement”.
Unicommerce caters to more than 15% of India’s e-commerce transactions and has a growing presence in West Asia and South Asia and according to the spokesperson, the company will continue to deepen and expand its presence in India and key overseas markets.
“Accordingly, there will be no change in the shareholding structure of Unicommerce, which will continue to operate as a profitable and independently managed company,” the spokesperson added.
Started by a group of IIT/IIM graduates – Karun Singla and Manish Gupta in 2012, Unicommerce offers e-commerce enabling software for warehouse management and omni-channel services and has over 10,000 sellers, brands and online retailers as its clients. Before being acquired by Snapdeal in 2015, Unicommerce had raised funding from Tiger Global [Read here] and Nexus Ventures Partners in different funding rounds.
As part of the Snapdeal 2.0 strategy, which the e-tailer charted after its merger talks with Flipkart hit a dead end, It is looking to pivot to a pure play marketplace model. It will lay off a chunk of its workforce in the process. Shedding off its associated entities FreeCharge, Unicommerce and Vulcan was also reportedly part of the strategy.
Source – The Telegraph