Greetings card retailer Moonpig is set to significantly expand its gifting offer after agreeing on a deal to acquire the Buyagift online platform.
The proposed acquisition is worth £124m and will see Moonpig buy all the issued share capital of Smartbox Group UK Limited, the company behind Buyagift.
Moonpig noted that move would deliver a step-change in its gifting proposition as it looks to tap into the growing £6bn gift experiences segment of the gifting market.
In addition, the integration of Buyagift’s product offering into Moonpig’s platform is expected to lead to cross-sell opportunities.
Buyagift reported unaudited revenue of £44m during its financial year, which generated profits (EBITDA) of £14m.
Moonpig Group chief executive Nickyl Raithatha said: “The proposed acquisition of Buyagift rapidly accelerates Moonpig Group’s journey to become the ultimate gifting companion. There is strong strategic rationale for the transaction, and compelling financial benefits.
“Buyagift is profitable and highly cash generative, with a proven track record of strong growth and we are excited by the ways that we can further transform the business using the group’s proven playbook.
“We see significant potential for the cross-selling of gifting experiences to Moonpig Group’s loyal customers. We look forward to working with the Buyagift team to deliver an enhanced proposition for our customers and to create value for our shareholders.”
The acquisition is expected to complete by the end of July. As a result, Moonpig expects revenue for the enlarged Moonpig group for its current financial year to be approximately £350m.
