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Kogan.com (ASX:KGN) - CEO, Ruslan Kogan (left) & Chief Financial Officer and Chief Operating Officer, David Shafer (right) - The Market Herald
CEO, Ruslan Kogan (left) & Chief Financial Officer and Chief Operating Officer, David Shafer (right)
Source: The Sydney Morning Herald
  • Kogan.com (KGN) has acquired 100 per cent of the capital in New Zealand online retailer Mighty Ape
  • Mighty Ape is one of New Zealand's longest-running online retailers with more than 690,000 unique customers and over 895,000 subscribers
  • For the 12 months ending in September, Mighty Ape had unaudited revenue of $120.1 million and unaudited gross profit of $37.8 million
  • Kogan expects to pay $122.4 million in four tranches to complete the purchase
  • However, this could vary depending on Mighty Ape's performance up to the delivery of its FY23 results
  • In light of this news, shares in Kogan.com are up 4.97 per cent and are trading at $16.91

Kogan.com (KGN) has acquired 100 per cent of the capital in New Zealand online retailer Mighty Ape.

Mighty Ape is one of New Zealand's longest-running online retailers with more than 690,000 unique customers and over 895,000 subscribers.

For the 12 months ending September 2020, Mighty Ape had revenue of $120.1 million, gross profit of $37.8 million, and earnings before interest, taxes, depreciation and amortisation (EBITDA) of $9.9 million.

It's important to note that all of these figures are unaudited.

For FY21, Mighty Ape is expected to generate $137.7 million in revenue, $45.7 million in gross profit, and $14.3 million in EBITDA.

"The Mighty Ape team is very happy to be joining forces with the Kogan.com Group, as we embark on the next stage of our growth," Mighty Ape Founder and CEO Simon Barton said.

"Combining Kogan.com will assist Mighty Ape to expand our product range and improve our customer experience," he added.

Kogan expects to pay $122.4 million in four tranches to finalise the buy, however, this could vary depending on Mighty Ape's performance up to the delivery of its FY23 results.

"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," Kogan Chief Operating Officer and Chief Financial Officer David Shafer commented.

"Mighty Ape will give us significant scale in New Zealand and further strength across a variety of operational dimensions. We will be drawing on Mighty Ape's deep experience in gaming, toys, other entertainment product categories and the New Zealand market," he added.

In light of this news, shares in Kogan.com are up 4.97 per cent and are trading at $16.91 at 10:34 am AEDT.


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