Greeting card large Moonpig has announced the proposed acquisition of Buyagift, the reward experiences platform, for £124m.
The acquisition accelerates Moonpig’s approach of getting a chief in the gifting market, and presents them entry into the £6bn encounters section.
Buyagift is the UK’s main present experiences system with the number one particular and number 3 brand names in the sector, Buyagift and Purple Letter Times.
The company presents its 3m buyers the broadest selection of experiences across the United kingdom, with over 4,400 partners throughout groups such as short stays, theatre and loved ones days out.
Previous calendar year, it posted revenues of £44m, with an EBITDA of £14m with a hard cash conversion rate of in excess of 100 for each cent.
The transaction will triple Moonpig’s gifting vary quickly, with no inventory.
In the meantime, Moonpig will use its details and technology abilities to the Buyagift makes to accelerate expansion
As a final result of the acquisition, Moonpig now expects income for the enlarged Moonpig Team in its comprehensive calendar year success to be somewhere around £350m.
Moonpig chief executive Nickyl Raithatha commented: “There is potent strategic rationale for the transaction, and compelling fiscal added benefits. Buyagift is lucrative and highly funds generative, with a proven observe history of powerful growth and we are thrilled by the methods that we can additional completely transform the organization working with the group’s demonstrated playbook.”
“We see sizeable potential for the cross-marketing of gifting experiences to Moonpig’s loyal prospects. We seem forward to operating with the Buyagift group to produce an enhanced proposition for our buyers and to build benefit for our shareholders.”