WH Smith has this morning announced it has sold Funkypigeon.com to Card Factory plc in a deal worth £24million.
The deal, when adjusted for transaction costs, will see £21million go into improving WH Smith's net debt position.
The decision to sell off the online personalised greeting card branch of the business comes following a strategic review at WH Smith and a new focus on travel retail.
Announcing the acquisition to shareholders this morning, Card Factory states Funky Pigeon has generated annual revenue of £32million on average in over the last two years and has a standalone team based in Bristol and Guernsey.
Darcy Willson-Rymer, Card Factory's chief executive officer, commented: "This acquisition marks a significant step forward in cardfactory's strategy to build a scaled, competitive digital presence in the celebration occasions market. It brings a high-quality platform and proven technology, accelerating our ability to compete in the direct-to-recipient card and gifting segment, so supporting our ambition to become the leading omnichannel retailer in our sector.
"Together, the enlarged customer base will benefit from a richer, more convenient customer proposition, combining the strength of our nationwide store estate and wider celebrations offer with Funky Pigeon's exceptional digital experience. Operational efficiencies, fulfilment synergies, and a unified technology platform will provide the data needed to develop deeper insights into the customer journey, enabling us to build a stronger, more integrated omnichannel business.
"The board and wider cardfactory team look forward to welcoming Funky Pigeon colleagues to the group."
FTSE 100
The UK's flagship share index, the FTSE 100, was down 58 points at 9,092 shortly after opening this morning.
Brent crude oil futures were down 0.24% at $69.36 a barrel.
Companies reporting today
- A G Barr - Q1 Trading Statement
- AstraZeneca* - Q2 Results
- Barclays* - Half Year Results
- ConvaTec - Half Year Results
- Croda International* - Half Year Results
- Games Workshop Group - Full Year Results
- Greggs* - Half Year Results
- Inchcape - Half Year Results
- Morgan Sindall Group - Half Year Results
- Paragon Banking Group - Q3 Trading Statement
- PayPal Holdings* - Q2 Results
- Shaftesbury Capital - Half Year Results
- SSP Group - Q3 Trading Statement
- Unite Group - Half Year Results
- Visa* - Q3 Results