Bolton-based online electricals retailer AO World said on Wednesday it would buy Stockport retailer of used smartphones and electronic products musicMagpie for about £10m pounds to boost its mobile and consumer tech businesses.
The 9.07 pence-per-share offer, valuing musicMagpie at around £10m, represents a premium of 58% to musicMagpie’s Tuesday stock closing price, and a consolidation of two of Greater Manchester’s, and the UK’s, biggest players in both the electricals and ecommerce spheres.
“With highly complementary business models, this acquisition will enable us to broaden our customer offerings while simultaneously advancing our sustainability objectives,” AO World non-executive Chair Geoff Cooper said in a statement. “This alignment positions us to drive growth and innovation in an increasingly environmentally-conscious market.”
Steve Oliver, Music Magpie chief executive co-founder, added: “AO is a highly trusted consumer brand that shares our commitment to providing a first-rate service for customers.
“We welcome the opportunity to join the AO Group and believe it represents a natural custodian for Music Magpie as part of the next stage of the business’ development.”
The musicMagpie board has unanimously recommended shareholders vote in favour of the deal after telecoms group BT and investment firm Aerilius Group dropped out of their respective pursuits of musicMagpie last year.
The purchase is expected to complete in the first quarter of 2025.
