Mon, 23 May 2022 | BUSINESS SALE
Moonpig has announced a deal to acquire gifting experience business Buyagift for £124 million. Moonpig says that the acquisition will deliver a “step-change” in its offering and helps to accelerate its strategy to establish itself as “the ultimate gifting companion”.
Buyagift, the trading name of Smartbox Group UK, is a platform that offers a wide variety of gift experiences, which range from food and drink, spa days and romantic getaways for couples, to supercar driving and helicopter flying.
Under the Buyagift and Red Letter Day Brands, Smartbox has around 3.3 million customers and has grown to be a leading provider in the £6 billion gifting experiences sector of the UK’s gifting industry. While the company has seen solid growth over the past decade, Moonpig says it is confident that it can accelerate this even further by leveraging its tech, data and brand-building capabilities and driving cross-sell opportunities.
The acquisition fee represents a multiple of slightly over 4.2x Smartbox’s turnover of £29 million for the year ending April 30 2021, although this was down 25 per cent from £38.6 million a year earlier, while post-tax profits fell from £12.3 million in 2020 to £7.1 million last year.
Moonpig CEO Nickyl Raithatha commented: “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 deal is forecast to close by the end of July 2022 and Moonpig says it expects revenue for the enlarged group to hit around £350 million in the 2023 financial year.
Find businesses for sale here.
If you are looking for an exit, we can help!
This is a unique opportunity to acquire a profitable and well-established business located in the picturesque village of Fourstones, Hexham. The business boasts an advised annual turnover of £650,000, with plenty of scope for growth.
LEASEHOLD
The business commenced activity in 2012 and provides high quality care to its service users, enabling them to maintain as high a level of independence as possible. The owners are very experienced in health and social care and have built a business wi...
LEASEHOLD
Specialising in high quality power tools / hand tools /fixings / fasteners / abrasives / adhesives / door hardware / ironmongery and workwear. Boasts strong relationships with its suppliers, alongside an exceptional industry reputation. Caters to ov...
LEASEHOLD
Please choose your settings for this site below. For more information please read our Cookie Policy
These cookies are necessary for our website to function properly and provide you with access to all features.
These are analytics cookies that help us to improve the way our website works.
These are used to improve the functional performance of the website and make it easier for you to use.