Photobox acquires Moonpig for £120m
Nick Jenkins set to net £30m windfall
Digital photo printer PhotoBox has acquired Moonpig.com, the renowned online greetings card provider, in a deal worth £120m.
The deal, which is based on a combination of cash and shares, brings together two companies with a combined customer base of six million people, and outstanding recent track records.
In the financial year to April 2011, PhotoBox’s sales increased by around 30%; the company expects this figure to reach 50% by the end of the year. Meanwhile Moonpig’s sales rose by 21% to £38m.
PhotoBox, which has built its reputation on customised photo albums, will use the acquisition to expand its repertoire of personalised souvenirs, and tap into the UK’s online greeting cards industry – thought to be worth around £1bn.
Meanwhile it is thought the deal has brought a windfall of around £30m for Nick Jenkins, who founded Moonpig in 1999 and owned 35% of the business prior to the deal, with a number of private investors holding the remaining shares. The company has been through six funding rounds in its 12-year history.
Jenkins, who will continue as an adviser and investor at PhotoBox, told Retail Week: “Every morning the equivalent of a Premier League football stadium full of people get a Moonpig card and they love them. We now want to build on that success.
“The explosion in digital photography over the past few years has been evident in the number of our customers using their own photographs to great and often hilarious effect in our cards.
“We can now offer a much wider range of photographic products to our customers while adding our own Moonpig creativity. We can also take our core greeting card product to countries which would be difficult to access as a standalone business.”