FAST Group, created in August 2025 through the merger of Australian parcel delivery firm Sendle, U.S.-based FirstMile, and ACI Logistix, is now in crisis. Sydney-based Federation Asset Management, a key investor, has frozen redemptions in its $100 million Federation Alternatives Investment Fund II, citing issues at FAST Group that reveal due diligence failures and financial problems.
The merger aimed to combine Sendle's tech platform and international reach with FirstMile's pickup networks and ACI's sortation facilities. Keith Somers, former CEO of ACI Logistix, became FAST Group's CEO, with a board from all three entities. Federation AM, a major stakeholder in Sendle, invested in the new group.
Sendle specialized in affordable, carbon-neutral parcel delivery for small e-commerce sellers, with pre-merger revenues around $32.5 million. FirstMile focused on mid-market shipping optimization, with revenues about $75 million. ACI Logistix had over 60 years in logistics, with revenues between $23.6 million and $100 million. FAST Group employed an estimated 300-900 people and had annual revenues of $130-200 million.
On December 12, 2025, Federation AM notified investors it was suspending redemptions from Fund II, which held about 64% of its capital in FAST Group. The fund cited "significant deficiencies" in ACI Logistix's financial statements discovered after the merger, raising questions about due diligence accuracy.
Federation injected $12 million in emergency operating capital into FAST Group post-merger. The CFO was replaced, and a chief restructuring officer was appointed. FAST Group is seeking up to $60 million in debt financing from hedge funds and distressed debt specialists, with potential lenders eyeing debt at steep discounts. Sources say FAST owes DoorDash $20 million, possibly from last-mile delivery partnerships.
As of January 10, 2026, no resolution has been announced. FAST Group may file for U.S. bankruptcy protection if financing fails, potentially leading to legal battles. Federation AM, managing $23 billion in assets, faces a reputational hit but not an existential threat.