Moonpig has announced its intent to acquire Smartbox Group UK, the owner of Buyagift and Red Letter Days for £124 million. This will deliver some 3.3 million customers from the two brands which generated revenue of £44 million in the latest trading year. Gift experience group Red Letter Days was owned briefly by Peter Jones and Theo Paphitis who sold it on to Smartbox in 2017.
Nickyl Raithatha, Moonpig CEO said: “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.”