Online electricals retailer AO World secures £10m takeover deal for musicMagpie
Online electricals retailer AO World has agreed a takeover of musicMagpie in a deal worth around £10m.
AO World said it will pay 9.07p a share in cash for the Stockport-based business, which buys and sells refurbished electronics and used computer games, consoles, books, films and music.
It comes after previous suitors BT and private equity firm Aurelius Group, which owns Footasylum, backed out of takeover talks within days of each other in November last year. MusicMagpie has since remained on the sale block as it looks to secure a deal.
AO World founder and chief executive John Roberts said adding a “top-tier trade-in service” is “essential” for the group.
“To achieve our strategic ambition of becoming the destination for electricals, it is crucial for AO to enhance its consumer tech offering,” according to Mr Roberts.
“MusicMagpie’s commitment to customer satisfaction and its exceptional brand are closely aligned with our values, and our shared cultures create a strong foundation for collaboration,” he added.
His counterpart at musicMagpie, chief executive and co-founder Steve Oliver, said: “I am very proud of the musicMagpie business and the trusted brand that we have created, providing consumers with a smart, sustainable and trusted way to buy, rent and sell refurbished consumer technology and physical media products.
“We welcome the opportunity to join the AO Group and believe it represents a natural custodian for musicMagpie as part of the next stage of the business’s development.”
The deal is expected to complete in the first quarter of next year.
MusicMagpie has seen its shares slump since a stock market flotation in April 2021, which valued the group at more than £200 million.