Dubai-based Shipa Freight, the digital freight forwarding arm of Kuwait’s logistics and warehouse provider Agility, is merging with Barcelona’s online freight platform, iContainers.

Shipa Freight and iContainers will combine technology platforms and operations, which will be wholly owned by Agility, the Kuwait based logistics company said in a statement. The terms of the merger were not disclosed.

The merger will create comprehensive suites of digital forwarding services such as freight shipments, household relocation services, agent services for local forwarding companies that are looking for international partners and "white label" digital forwarding services that can be integrated into B2B e-commerce platforms, according to the statement.

"We expect the digital freight forwarding market to grow by over 40 percent a year over the next few years. The Shipa Freight - iContainers merger will create a stronger company to serve these customers," said Henadi Al-Saleh, Agility's Chairperson.

Last month Agility said it would fully acquire UK-based John Menzies for $751 million to create an airport services giant in combination with its unit, National Aviation Services.

(Reporting by Brinda Darasha; editing by Seban Scaria)