Online greeting cards and gifting retailer Moonpig has announced the proposed acquisition of gift experiences platform Buyagift for £124 million.
Moonpig said the move will deliver a step-change in its gifting proposition, unlocking the growing £6 billion UK gift experiences segment of the gifting market and the potential for digital delivery of gifts (‘gift-in-a-card’) and the same-day gifting market.
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 Moonpig’s proven playbook. We see significant potential for the cross-selling of gifting experiences to Moonpig’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.