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Australian company Kogan.com, which owns Dick Smith, bought New Zealand online retailer Mighty Ape for A $ 122 million (NZ $ 127 million).
Mighty Ape Co-Founder and CEO Simon Barton will remain in office.
The purchase would grow Kogan.com’s operations in New Zealand and also grow its Australian business through Mighty Ape’s Australian websites, the company said.
Kogan.com would finance the purchase using its cash reserves.
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Mighty Ape has more than 690,000 unique customers a year.
Auckland-based Mighty Ape had more than 690,000 unique customers in the year through October 31 and a community of more than 895,000 subscribers.
Mighty Ape launched in 1995 as Gamezone, a traditional brick and mortar store, before changing its name to Mighty Ape and becoming an online exclusive business in 2008.
The company had 161 permanent full-time employees. It posted revenue of NZ $ 125 million for the year ended September 2020, with a gross profit of NZ $ 39 million and earnings before interest, taxes, depreciation and amortization of NZ $ 10 million.
For the next year, the Mighty Ape was forecast to generate revenue of NZ $ 144 million and a gross profit of NZ $ 47 million.
Mighty Ape was a natural strategic buy, allowing Mighty Ape to leverage its customer offering and provide the infrastructure and expertise to grow it, Kogan.com said.
“Mighty Ape will give us significant scale in New Zealand and more strength across a variety of operational dimensions,” Kogan.com COO David Shafer said in a statement Thursday.
“We will leverage Mighty Ape’s deep expertise in games, toys, other categories of entertainment products and the New Zealand market, and combine this expertise with Kogan.com’s sourcing, technology, systems, infrastructure and marketing capabilities to further improve plus the existing ones of the group. market leading offering throughout Tasmania. “
Barton said the Mighty Ape team was “very happy to join forces” with the Australian company.
Kogan Mobile, owned by Kogan.com, launched a prepaid mobile plan with Vodafone in New Zealand last year.
