AO World is set to acquire musicMagpie in a deal proposed as a ‘scheme of arrangement’.
More than half of musicMagpie’s shareholders have indicated that they will back the sale based on AO World’s offer of 9p per share. The closing price was 5.75p per share as at 1st October, ’24.
Having floated at 193p per share in 2021, musicMagpie was already significantly ahead of the circular economy movement. It focused on acquiring and refurbishing unwanted mobile phones and other consumer technology products for onward sale to budget-conscious consumers. It also focused on related products such as music CDs, DVDs, PC games, and books.
AO World CEO John Roberts said of the deal: “To achieve our strategic ambition of becoming the destination for electricals, it is crucial for AO to enhance its consumer tech offering. A top-tier trade-in service will be essential, and musicMagpie represents a significant enabler in unlocking value through our reverse supply chain. Moreover, musicMagpie stands to leverage our existing supply channels, which could lower its cost of acquisition and allow us to scale refurbished technology with operational precision. musicMagpie’s commitment to customer satisfaction and its exceptional brand are closely aligned with our values, and our shared culture create a strong foundation for collaboration.”
musicMagpie co-founder and CEO Steve Oliver commented: “AO is a highly trusted consumer brand that shares our commitment to providing a first-rate service for customers.
“I am very proud of the musicMagpie business and the trusted brand 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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