Founded in 2000 by CEO John Roberts, AO World (“AO”) is the leading online retailer of major domestic appliances (“MDA”) such as washing machines and fridges with 17% market share.

The company also sells a wide variety of small domestic appliances (“SDA”), televisions (“AV”), mobile phones, consumer electricals and laptops. With a focus on brilliant service and two-person delivery, installation and recycling, the group has received over 1m Trustpilot reviews with an impressively high average score of 4.9/5. The group has also invested in its own recycling centre.

09 Oct 2024

Synergistic acquisition of musicMagpie

AO has announced a recommended cash offer for consumer technology re-commerce leader musicMagpie. We believe this is an exciting opportunity for AO, given musicMagpie’s expertise and trusted brand in consumer technology re-commerce, with over 9m customer contacts.

AO is offering 9.07p per share, equating to £10m cash and a c. £24m Enterprise Value which, in our view, appears good value at c. 0.2x EV/LTM Revenues and 3.4x EV/LTM EBITDA. We do not at this stage forecast the consolidated profit impact of musicMagpie.

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