News: Asia Pacific Digital to acquire Singaporean digital agency

Asia Pacific Digital (ASX:DIG) has separately agreed to acquire Singaporean digital agency @ccomplice and enter into a new ecommerce venture with Australian sports supplements online retailer Supps R Us.

The acquisition of @ccomplice for S$1 million in cash and shares will provide the company with an improved on-the-ground presence in Singapore, serving local Singaporean clients and regional multinationals.

Formed in 2010, @ccomplice has worked with some of the biggest brands in Asia: Panasonic, Toyota, Lexus, Suzuki, Singpost, DBS and Standard Chartered.

It has historically delivered annual revenues of S$1 million (A$948,922) to $2million per annum and expects to enter a period of significant growth as part of APD.

Separately, Supps R Us has partnered with APD to materially increase the size of its business over the next five years.

APD will provide A$4.5m of digital services over the life of the agreement and will in return be remunerated, under a Master Services arrangement, via a fixed retainer, a tiered share of revenues above an agreed hurdle and a convertible note(s) equivalent to a 30% opening equity interest

The sports nutrition industry in Australia is a $530 million retail market that is estimated to grow to $700 million in annual sales by 2019.

The market is growing at around 8% pa in Australia with online sales growing at around 25% pa.

Supps R Us, a leading Australian B2C online sports supplements retailer, has a current revenue run rate of about $10 million and has delivered 100% compound growth over the past two financial years.

The two companies are also developing a business plan to take the Supps R Us brand into South East Asia.