musicMagpie Sold to AO: A New Era Begins
Deal News | Dec 17, 2024 | Business Cloud
AO World, the Bolton-based electronics retailer, has completed its acquisition of musicMagpie, a Stockport-originated company known for its innovative entry into the circular economy with a model that allowed users to trade CDs, DVDs, and later mobile phones for cash. The acquisition marks the end of musicMagpie's journey as an independent publicly listed company on the London Stock Exchange's AIM market, where it faced significant financial challenges, including a drastic decline in share price from 193p at its IPO in 2021 to around 5p before AO's intervention. AO's acquisition valued the company at nearly £10 million with a share offer of 9.07p per share. Steve Oliver, the co-founder and CEO of musicMagpie, expressed gratitude towards AO for the merger, recognizing it as a robust foundation for future growth. He particularly noted the alignment in company cultures focusing on customer care and the circular economy. Oliver also extended thanks to Martin Hellawell, his advisor teams at Shore Capital Markets and Addleshaw Goddard, and his team at musicMagpie for their efforts and support throughout the transaction.
Sectors
- Retail
- Circular Economy
- Financial Services
Geography
- United Kingdom – Both AO World and musicMagpie are based in the UK, and the transaction was conducted within this geographical region.
Industry
- Retail – The acquisition of musicMagpie by AO World is a significant event within the retail sector, particularly in the electronics and consumer technology market.
- Circular Economy – musicMagpie's business model focuses on the circular economy, allowing consumers to trade electronics and contributing to sustainability through reuse.
- Financial Services – The involvement of AIM and the financial advisories from Shore Capital Markets indicates the article's relevance to financial markets and investment activities.
Financials
- £10 million – The total valuation of musicMagpie at the time of acquisition by AO World.
- 9.07p per share – Acquisition price per share paid by AO for musicMagpie.
- 193p – The initial share price of musicMagpie at its IPO in 2021.
- £208 million – Market capitalization of musicMagpie at the time of IPO in April 2021.
Participants
| Name | Role | Type | Description |
|---|---|---|---|
| musicMagpie | Target Company | Company | A UK-based company facilitating trade-ins of used consumer electronics and media, formerly listed on the AIM market. |
| AO World | Buyer | Company | A Bolton-based electronics retailer known for its wide array of appliances and electronics. |
| Steve Oliver | Co-founder & CEO | Person | Co-founder and CEO of musicMagpie, instrumental in the company’s growth and acquisition by AO. |
| Shore Capital Markets | Financial Advisor | Company | Provided financial advisory services to musicMagpie during the acquisition process. |
| Addleshaw Goddard | Legal Advisor | Company | Provided legal advisory services to musicMagpie during the acquisition process. |
| Martin Hellawell | Chair | Person | Chairman of musicMagpie, acknowledged for his mentorship and advisory role during the company's public life. |