India’s first e-commerce company to IPO Infibeam Avenues today said that it has terminated Rs 120 crore-deal to acquire Snapdeal’s inventory and order management subsidiary company Unicommerce. The call-off comes seven months after Infibeam’s board had approved the acquisition deal.
“We wish to inform you that the SPA (share purchase agreement) has been terminated as the conditions precedent were not fulfilled within the stipulated time period,” PTI quoted Infibeam saying in its regulatory filing. The deal was scheduled to close in three-five months.
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Infibeam had entered into SPA with Unicommerce and Snapdeal’s owner Jasper lnfotech to acquire Unicommerce’s 100% stake. The acquisition, according to Infibeam would have strengthened its e-commerce enablement capabilities and expand the product offerings for existing clients.
“Accordingly, there will be no change in the shareholding structure of Unicommerce, which will continue to operate as a profitable and independently managed company,” a Unicommerce spokesperson said in a separate statement.
As per Infibeam’s May 2018 filing, it was to issue optionally convertible debentures on preferential basis to Jasper Infotech valued up to Rs 120 crore, subject to shareholders’ approval. Unicommerce’s net worth, according to the filing, was Rs 24.63 crore and turnover of Rs 20.27 crore as on March 31, 2018.
Buoyed by the strong revenue growth in Q2 fiscal year 2019, Infibeam Avenues is focusing on large-scale government and PSU buying to drive its future growth, Managing Director Vishal Mehta told FE Online in an earlier interview.
“If you look at the first two quarters alone of this FY, we processed about Rs 23,000 crore worth transactions; we processed that much in the entire last year. We believe we can close the current fiscal year at an annual run rate of Rs 50,000 crore,” Mehta said.
Unicommerce has more than 10,000 sellers, brands and online retailers as its client list. Its spokesperson added that the company will continue to grow in India and key overseas markets in the Middle East and South Asia even as it has more than 15% share of India’s e-commerce transactions
Snapdeal in its restructuring plans post its acquisition deal with Flipkart was called off had sold its payment services unit Freecharge to Axis Bank for Rs 385 crore. It also sold its logistics firm Vulcan Express to Future Group’s Future Supply Chain Solutions.