SingPost announced this morning that it will be acquiring 30% of USA-incorporated Postea Inc via a cash payment of US$9.4m and a non-cash consideration comprising intellectual property (IP) rights for its SAM, SAM PLUS, POST21 and vPOST systems to Postea valued at US$24.3m. SingPost will leverage Postea's expertise and technology to further develop its IP. While we are positive on this development, we are keeping our earnings estimates for now as it would take time to develop technology and enhance IP. We remain Neutral on the stock given limited share-price upside. Our DDM-derived target price (discount rate 8.5%) is intact at S$0.80.