TIDMMYSL
RNS Number : 7645B
MySale Group PLC
06 April 2017
MYSALE GROUP PLC
6 April 2017
Acquisition
MySale Group plc (AIM: MYSL) ("the group") the leading
international online retailer, is pleased to announce the
acquisition of certain trade and assets of Identity Direct, a
leading international retailer of personalised products.
Founded in 1992 Identity Direct has a rich heritage in providing
consumers with personalised gifts and products, including; apparel,
sporting goods, labels and books and has partnered with world
famous brands including; Disney, Marvel, Nickelodeon and Mattel.
The acquisition includes a small, skilled workforce, stock and
customer lists as well as a leasehold production centre in
Auckland, New Zealand where products are personalised to the
customer's requirements and shipped globally.
The group has paid A$2.69 million to the administrators of
Identity Direct Ltd and Ortega Publishing Pty Ltd for the trade and
assets acquired with deferred consideration of A$0.25 million
payable on the finalisation of certain post-completion matters. All
consideration is being satisfied from existing cash resources.
In the year to 30 June 2016, the most recently available
financial statements, the trade being acquired had revenue of circa
A$10 million per annum. Included in the acquisition are assets and
inventory with a net book value of approximately A$1.5 million and
a valuable database of 66,000 active customers. The group estimates
such an active database would represent circa A$2 million of value
when compared to the group's average acquisition cost per active
customer.
The acquisition brings a number of strategic benefits as it is
expected to:
-- Establish the group in a growing segment with barriers to entry and unique product.
-- Provide a strong fit with the group's existing customer base
and leverage sunk marketing costs.
-- Improve customer data collection.
In terms of synergies the group will reduce operating costs by
combining shared services, improving shipping rates and reducing
payment processing costs. The Identity Direct operations will
benefit significantly from the support available from the group's
resources and infrastructure which should in turn deliver an
improved offer and service to customers whilst enhancing
efficiency.
The group also anticipates there are substantial opportunities
to drive revenue by:
-- Cross marketing to the ANZ(1) active customer base and
targeting our South-East Asian markets (Hong Kong, Singapore,
Malaysia, Thailand and The Philippines).
-- Seeking to reactivate customers in our existing database who
respond well to the Identity Direct range of products.
-- Increasing the range of products upon which Identity Direct
is able to offer personalisation.
-- Development of new licences with existing and new brand partners.
Carl Jackson, Chief Executive Officer, commented
"We are delighted to welcome Identity Direct to the MySale
group. This acquisition will allow us to build an additional
revenue stream that is very complementary to our existing core
activities.
"We believe that MySale's strength and expertise as an online
retailer of scale will bring many benefits to Identity Direct which
in turn will unlock significant opportunities and efficiencies
hitherto unavailable to that business."
_______________________
(1) Australia and New Zealand
Enquiries:
MySale Group plc
+61 (0) 414 817
Carl Jackson, Chief Executive 843
+44 (0) 777 585
Graeme Burns, Investor Relations 4516
Zeus Capital Limited (Nominated +44 (0) 20 3829
Adviser & Joint Broker) 5000
Giles Balleny, Corporate Finance
Benjamin Robertson, Corporate
Broking
+44 (0) 20 7496
N+1 Singer (Joint Broker) 3000
Mark Taylor
+44 (0) 20 7379
Maitland 5151
Dan Yea
About MySale Group
MySale is a leading international online retailer with
established online flash sales and retail websites in Australia,
New Zealand, South-East Asia and the United Kingdom. Founded in
2007, the Group provides customers with access to outstanding
brands and products at discounted prices whilst simultaneously
providing brand partners unique international inventory and sales
solutions.
The Group's flash sales websites host time limited sales in each
of its territories. These flash sales are focused on fashion,
apparel, health, beauty and homeware categories and are
predominantly undertaken on a consignment inventory basis. The
retail websites operate in Australia and focus on similar product
categories using mostly drop-shipped inventory.
Customers' shopping experiences are enhanced by the Group's
deployment of leading edge technology to ensure personalised and
localised product offerings. Customer convenience has been at the
heart of the Group's technology development since the earliest days
and now mobile commerce is the Group's main sales channel.
The Group's online sales are supported by a robust and flexible
network of in-house supply chain infrastructure and technology that
enables MySale to offer products from around the world for sale and
delivery to customers in each territory.
As a result of these exceptional capabilities in inventory
management and international sales MySale has built an enviable
portfolio of over 2,500 brand partners from whom products are
sourced.
The Group operates websites under a number of different brands
all of which operate on a uniform technology platform and a single
international logistics infrastructure.
The Group's flash sales brands are; OzSale and BuyInvite in
Australia; NzSale in New Zealand; SingSale in Singapore; MySale in
Australia, New Zealand Malaysia, Thailand, the Philippines, the
United Kingdom and Hong Kong, and Cocosa in the United Kingdom,
Australia and New Zealand; whilst the Group's retail websites are
Deals Direct, OO.com and Top Buy in Australia.
This information is provided by RNS
The company news service from the London Stock Exchange
END
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