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AO World has announced that it is set to acquire MusicMagpie in a deal worth £9.98m which is expected to complete in early 2025.
The deal received backing from MusicMagpie’s board, with directors unanimously recommending the offer.
AO World is hoping that the deal will boost its presence in the mobile and consumer tech market.
The electrical retailer stated that the acquisition would “drive growth in key product categories”.
John Roberts, AO CEO, said: “To achieve our strategic ambition of becoming the destination for electricals, it is crucial for AO to enhance its consumer tech offering. A top-tier trade-in service will be essential, and MusicMagpie represents a significant enabler in unlocking value through our reverse supply chain.
“Moreover, MusicMagpie stands to leverage our existing supply channels, which could lower its cost of acquisition and allow us to scale refurbished technology with operational precision. 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. I am excited to welcome Steve and the MusicMagpie team into the AO family and to realise the potential that our combined efforts can unlock.”
Martin Hellawell, MusicMagpie non-executive chairman, added: “The MusicMagpie board is pleased to recommend AO’s cash offer for musicMagpie. AO’s offer is the result of MusicMagpie’s extensive process to seek an acquirer for the business and represents an opportunity for shareholders to realise their holdings in full and in cash at a significant premium to the prevailing share price.
“The MusicMagpie board believes MusicMagpie will benefit from being a part of the AO group that has the scale and reach to support MusicMagpie’s future growth and development.”
