Online greetings card giant, Moonpig, is to acquire gifting experience business, Buyagift, for £124 million, in a deal expected to be completed at the end of July 2022.
The acquisition will help Moonpig to take a major stride into the growing gift experiences segment of the gift market, which is worth around £6bn in the UK alone. Buyagift’s product offering is complementary to Moonpig’s core greetings card business, helping to drive cross-over selling opportunities for both sides of the business.
The deal also brings greater potential for the digital delivery of gifts (‘gift-in-a-card’) and same-day gifting.
Moonpig 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.”