AO World plans to acquire MusicMagpie in a move to expand its tech market presence.
- The acquisition is valued at approximately £9.98 million and is set for completion in early 2025.
- MusicMagpie’s board has shown unanimous support for the acquisition.
- The deal aims to enhance AO World’s consumer tech offerings and sustainability goals.
- MusicMagpie is expected to benefit from AO’s supply channels, boosting operational efficiency.
AO World is poised to acquire MusicMagpie, a second-hand tech retailer, for £9.98 million. This strategic move is designed to increase AO World’s influence within the mobile and consumer technology markets. The deal is projected to be finalised by early 2025, backed unanimously by MusicMagpie’s board of directors.
Geoff Cooper, Chair of AO World, highlighted that the complementary business models of the two companies are anticipated to broaden their customer offerings and advance AO’s sustainability objectives. By incorporating MusicMagpie, AO World aims to drive growth in essential product categories.
John Roberts, CEO of AO, elaborated that enhancing AO’s consumer tech offerings aligns with their strategic ambition of becoming a key player in electrical retail. He stated, “A top-tier trade-in service will be essential, and MusicMagpie represents a significant enabler in unlocking value through our reverse supply chain.”
Roberts further explained that MusicMagpie would leverage AO’s existing supply channels to lower acquisition costs and increase the scalability of refurbished technology operations with precision. This aligns well with MusicMagpie’s commitment to customer satisfaction and operational excellence.
Steve Oliver, CEO and co-founder of MusicMagpie, expressed pride in the company’s achievements and acknowledged AO as a well-aligned partner. He remarked, “I am very proud of the MusicMagpie business and the trusted brand that we have created,” recognising AO as a suitable guardian for future growth and development.
The acquisition signifies a strategic step for AO World to reinforce its market position and sustainability goals in the tech sector.
