Multi-category eTailer Kogan has acquired New Zealand eTailer Mighty Ape for a headline purchase price of AUD $122.4 million.
Mighty Ape is one of New Zealand’s leading online retailers, with a focus on gaming, toys and other entertainment categories.
The business has more than 690,000 unique customers, and more than 895,000 subscribers, with the Kogan acquisition providing the infrastructure to further accelerate its growth and customer offering.
According to Kogan's shareholder presentation, Mighty Ape has a 4.9/5 rating on Google from 37,000 reviews.
Kogan COO and CFO David Shafer said that Kogan is thrilled to welcome Mighty Ape to the business.
"We are pleased to be bringing the iconic Mighty Ape into the Kogan Group, and are delighted to be welcoming Simon Barton and his team.
"We are a natural home for Mighty Ape, given similar histories and shared values — most importantly our obsession with delighting customers, and continually improving the online shopping experience.
"Mighty Ape has more than a decade of experience and track record of delighting Kiwi customers, and has become one of New Zealand’s most trusted brands," he said.
Significant revenue and cost synergies are expected to result from the acquisition, with pre-synergy forecasts for FY21 expecting revenue of AUD $137.7 million, gross profit of AUD $45.7 million and EBITDA of AUD $14.3 million.
"Mighty Ape will give us significant scale in New Zealand and further strength across a variety of operational dimensions," Shafer added.
"We will be drawing on Mighty Ape’s deep experience in gaming, toys, other entertainment product categories and the New Zealand market, and combining this experience with Kogan's sourcing, technology, systems, infrastructure, and marketplace capabilities, to further enhance the group’s already market-leading offering across the Tasman.
"We look forward to serving and delighting customers throughout New Zealand and Australia in an ever-widening range of categories, as smart shoppers increasingly turn online for their shopping needs," he said.
Kogan funded the purchase from its cash reserves and will pay the purchase amount over four instalments.
The Mighty Ape founder and executive team will be retained with incentives until at least delivery of FY23 financial results.