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WH Smith has confirmed that it has completed the sale of Funky Pigeon to Card Factory for £24m.
Following the disposal, WH Smith has stated that it has completed its move to becoming a pure play global travel retailer.
As a result of this deal Card Factory is now the second largest online card and attached gift retailer in the UK market. Over time, Funky Pigeon’s technology platform will become the core digital platform for its UK and Ireland business.
The acquired platform, which operates funkypigeon.com, generated on average around £32m in full-year revenues and around £5m EBITDA over the last two financial years.
Card Factory said the acquisition will boost its existing digital strategy, providing a platform for its online growth, particularly in the direct-to-recipient card and attached gifting market.
The business outlined its vision to expand its digital presence with a twofold digital strategy. This includes “meeting the needs of online customers looking for a convenient and great value card with attached gift service”, with the option for personalisation.
The second pillar of its digital strategy is to extend its store-based party and celebrations offer by providing customers with the ability to “seamlessly access an extended range through our omnichannel offering”.
Darcy Willson-Rymer, Card Factory CEO, said: “This acquisition marks a significant step forward in cardfactory’s strategy to build a scaled, competitive digital presence in the celebration occasions market.
“It brings a high-quality platform and proven technology, accelerating our ability to compete in the direct-to-recipient card and gifting segment, so supporting our ambition to become the leading omnichannel retailer in our sector.”
He added: “Together, the enlarged customer base will benefit from a richer, more convenient customer proposition, combining the strength of our nationwide store estate and wider celebrations offer with Funky Pigeon’s exceptional digital experience.
“Operational efficiencies, fulfilment synergies, and a unified technology platform will provide the data needed to develop deeper insights into the customer journey, enabling us to build a stronger, more integrated omnichannel business.”
