Moonpig Group earned £ 124 million for a gift experience platform.
The London-listed online greeting card company is targeting a £ 6 billion UK market with the deal for Smartbox Group UK, the company behind the Buyagift and Red Letter Days brands.
The brands have a 3.3 million customer base for a range of physical and experiential gifts delivered through over 4,400 partners, built over 20 years.
The 4,800 experiences include short breaks, theater and shows, dining out, afternoon tea and days away from home.
Moonpig said the deal would see Smartbox Group leverage its dataset to provide highly relevant gift recommendations on thousands of new products.
The latter has experienced steady growth in double-digit CAGR revenues over the past 10 years. In fiscal 22, the company had revenues of £ 44 million with an adjusted EBITDA margin rate of 31%.
“The proposed acquisition of Buyagift quickly accelerates the Moonpig Group’s journey to become the ultimate gift companion,” said Nickyl Raithatha, CEO of the Moonpig Group.
“There is a strong strategic rationale for the transaction and attractive financial benefits. Buyagift is profitable and highly profitable, with a proven track record of strong growth, and we are excited about the ways we can further transform the business using the group’s proven playbook.
“We see significant potential for cross-selling gift experiences to Moonpig Group’s loyal customers. We look forward to working with the Buyagift team to offer a better proposition to our customers and create value for our shareholders. “
The Moonpig group earns 124 million pounds for Buyagift
Source link The Moonpig group earns 124 million pounds for Buyagift