Moonpig has made moves to grow its gifting offer with the proposed acquisition of Buyagift.

The greetings card retailer has proposed purchasing the entire issued share capital of Buyagift for a cash consideration of £124m.

Nickyl Raithatha

Nickyl Raithatha said there was ‘strong strategic rationale’ for the acquisition

The acquisition would fit into Moonpig’s strategy to become the “ultimate gifting companion”, giving access to a new range of gifting options including a £6bn UK gift experiences business.

It would also give Moonpig access to Buyagift’s 3.3 million active customers across the Buyagift and Red Letter Days brands.

Moonpig would leverage its tech and data capabilities to incorporate the Buyagift proposition into its own website driving cross-sell opportunities.

Moonpig chief executive Nickyl Raithatha said: “The proposed acquisition of Buyagift rapidly accelerates Moonpig Group’s journey to become the ultimate gifting companion. There is strong strategic rationale for the transaction and compelling financial benefits. 

“Buyagift is profitable and highly cash generative, with a proven track record of strong growth and we are excited by the ways that we can further transform the business using the group’s proven playbook. 

“We see significant potential for the cross-selling of gifting experiences to Moonpig Group’s loyal customers. We look forward to working with the Buyagift team to deliver an enhanced proposition for our customers and to create value for our shareholders.”

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