Shares in MusicMagpie (LON: MMAG) surged by more than 55% Wednesday after the company announced it had agreed to be acquired by AO World (LON: AO.), a leading online retailer of electrical goods.
Under the terms of the deal, AO World will pay 9.07 pence per MusicMagpie share in cash. This values the company at approximately £9.98 million. The offer represents a premium of 58% to MusicMagpie’s closing price on October 1, 2024.
The acquisition is expected to be completed in the first quarter of 2025, subject to regulatory approval and shareholder consent.
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AO World believes the acquisition of MusicMagpie will complement its existing business. In addition, it will help it to expand its offering in the mobile and consumer technology categories. MusicMagpie is a leading online platform for buying, selling, and renting refurbished consumer electronics and media products.
“The proposed acquisition of musicMagpie presents a strategic opportunity to integrate one of the UK’s leading mobile recommerce operators into our portfolio,” said Geoff Cooper, Non-Executive Chair of AO World. “With highly complementary business models, this acquisition will enable us to broaden our customer offerings while simultaneously advancing our sustainability objectives.”
He added that the deal positions the company to drive growth and innovation in an increasingly environmentally-conscious market.
Steve Oliver, Chief Executive Officer and Co-founder of MusicMagpie, 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’ development.”
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