AO World is set to acquire MusicMagpie in a significant £9.98 million deal, aiming to strengthen its position in the consumer tech market.
- The acquisition is expected to complete in early 2025, following unanimous approval from MusicMagpie’s board.
- AO World’s chair highlighted the complementary nature of the businesses as a driving force behind the acquisition.
- MusicMagpie’s CEO expressed pride in joining AO, emphasising a shared commitment to customer satisfaction and sustainability.
- The deal is projected to enhance growth in key product categories, benefiting both companies.
AO World, a leader in the electrical retail sector, has announced its intention to acquire MusicMagpie for £9.98 million. This strategic purchase aims to bolster AO World’s presence in the mobile and consumer tech markets. The completion of the deal is anticipated in early 2025, as it received full backing from MusicMagpie’s board of directors, who unanimously recommended the offer.
According to AO World chair Geoff Cooper, ‘With highly complementary business models, this acquisition will enable us to broaden our customer offerings while simultaneously advancing our sustainability objective.’ This underscores the strategic fit and potential synergies between the two companies.
John Roberts, CEO of AO World, noted the importance of augmenting their consumer tech offerings, stating that ‘a top-tier trade-in service will be essential, and MusicMagpie represents a significant enabler in unlocking value through our reverse supply chain.’ He also highlighted that MusicMagpie could leverage AO’s existing supply channels, which might reduce acquisition costs and facilitate the scaling of refurbished technology.
MusicMagpie CEO Steve Oliver expressed enthusiasm about the acquisition, stating, ‘AO is a highly trusted consumer brand that shares our commitment to providing a first-rate service for customers.’ He also affirmed, ‘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.’ Oliver welcomed the collaboration with AO as a natural progression for MusicMagpie’s development.
The acquisition is expected to drive growth in key product categories for AO World and enhance MusicMagpie’s operations. This move aligns with both companies’ strategic goals, paving the way for future expansion and innovation in the tech retail market.
The acquisition of MusicMagpie by AO World signifies a pivotal step towards enhancing their consumer tech offerings and reinforcing sustainability objectives.
