Wakefield-based cardfactory has entered into an agreement to acquire funkypigeon.com from WH Smith for cash consideration of £24m.
funkypigeon.com operates an online personalised card and attached gifting business, which is supported by its standalone team in Bristol and Guernsey. Over the prior two financial years, Funky Pigeon on average generated £32m revenue per annum and £5m EBITDA.
The acquisition of Funky Pigeon accelerates cardfactory’s digital strategy, providing a platform for online growth, particularly in the direct-to-recipient card and attached gifting market.
By combining Funky Pigeon’s digital platform with cardfactory’s existing omnichannel offer, the business intends to leverage its 24 million unique store customers to develop “a highly competitive online presence in the celebration occasions market.”
Upon completion, cardfactory will be the second largest online card and attached gift retailer in the UK market.
Darcy Willson-Rymer, cardfactory CEO, said: “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.”
