FCA approval for musicMagpie acquisition

The Financial Conduct Authority (FCA) has granted regulatory approval for AO’s acquisition of Stockport-headquartered circular economy pioneer, musicMagpie.

The £10 million deal was announced at the beginning of October 2024 and would see AO wholly takeover musicMagpie, with shareholders receiving 9.07p per share. Following the FCA approval, shareholders will vote to approve the sale at a General Meeting on 20th November according to a timeline published by musicMagpie on 28th October; a majority of shareholders already having indicated they will back the deal.

The takeover by AO, best known as an online retailer of white goods, will support the business’ growth ambitions in the refurbished technology market, currently offered through its ownership of the Mobile Phone Direct brand. musicMagpie has also previously been in negotiations to sell to both BT and private equity investor, Aurelius Group, but failed to come to an agreement.

Commenting on the sale announcement in October, musicMagpie CEO and co-founder, Steve Oliver, said:

“AO is a highly trusted consumer brand that shares our commitment to providing a first-rate service for customers. I am very proud of the musicMagpie business and the trusted brand that we have created, providing consumers with a smart, sustainable and trusted way to buy, rent and sell refurbished consumer technology and physical media products. We welcome the opportunity to join the AO Group and believe it represents a natural custodian for musicMagpie as part of the next stage of the business’ development.”

Chief Executive Officer of AO, John Roberts said:

“To achieve our strategic ambition of becoming the destination for electricals, it is crucial for AO to enhance its consumer tech offering. A top-tier trade-in service will be essential, and musicMagpie represents a significant enabler in unlocking value through our reverse supply chain. Moreover, musicMagpie stands to leverage our existing supply channels, which could lower its cost of acquisition and allow us to scale refurbished technology with operational precision. musicMagpie’s commitment to customer satisfaction and its exceptional brand are closely aligned with our values, and our shared cultures create a strong foundation for collaboration. I am excited to welcome Steve and the musicMagpie team into the AO family and to realise the potential that our combined efforts can unlock.”