Moonpig to acquire Buyagift in £124m deal
Online greeting card specialist Moonpig has agreed to acquire gifting experience firm Buyagift for £124 million.
The company said the move will deliver a step-change in its gifting proposition as it looks to benefit from the the growing £6 billion UK gift experiences segment of the gifting market.
In addition, the integration of Buyagift’s product offering into Moonpig’s platform will drive cross sell opportunities. The company added: “The outcome is that Moonpig Group will be able to recommend specific and bespoke gift experiences to approximately 13 million loyal customers every time they shop with us.”
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. This means that Moonpig now expects revenue for the enlarged Moonpig group in FY23 to be approximately £350 million.
