NVM backs secondary buyout at Entertainment Magpie

ENTERTAINMENT Magpie, the recommerce technology company that buys unwanted gadgets,  games, consoles, CDs, and DVDs, is set to soar into a new era with fresh private equity backing.

The Stockport company has received a significant development capital investment from the Manchester office of NVM Private Equity in a deal that sees LDC, its investor since 2011, exit the business.

Since launch in 2007, the Hazel Grove company has built up a customer base of more than three million people, won a host of awards and also launched in the US, although it trades there as decluttr.com.

Co-founder Steve Oliver said the NVM investment would allow the business, which has around 800 employees  to invest in its platform, leading to same-day payments for customers and an enhanced user experience. Further growth in the US business is also part of the future strategy.

He said: “This is a hugely positive development for us and will take us into an exciting future as we expand our electronics business and launch faster payments.

“We have enjoyed a strong relationship with LDC over the period of working together and are grateful for their support during the last four years, but we are now delighted to be working with the excellent team at  NVM at such an exciting time for the business.

“We will now be launching our new faster payments offer for customers, which enables us to make payment for their items on the same day we receive them. This will allow our customers to not only declutter but also raise cash quickly for their unwanted items as a debt-free alternative to the much maligned ‘pay day loan’ type lenders.”

He added: “We will also be looking to now expand our successful US business in the coming months, along with furthering the musicMagpie.co.uk platform to enable us to both buy and sell to our significant consumer base of over 3m users.”

Andy Leach, from NVM, will join the Entertainment Magpie board, alongside Oliver and co-founder Walter Gleeson, and the company’s other executive directors Ian Storey (CFO), Peter Petrondas (group electronics director) and Jo Smith (IT director).  A non-executive chairman will be appointed in the near future.

Andy Leach said: “We are very much looking forward to working with Steve and the team at musicMagpie to help them deliver the very clear strategies that the business has for the next stage of its growth”

The Deloitte Manchester office provided lead advisory services to the deal, with DWF (vendors) and Osborne Clarke (buyers) providing legal advices. Due Diligence Services were provided by KPMG (Financial), Sempora Consulting (Commercial and Market), Intuitus (IT) and The Quinn Partnership (Management).

John Hughes, transaction services partner at KPMG who advised Entertainment Magpie said: “Music Magpie is a truly innovative business. This new investment should support them in their ambitious plans for the next phase of growth which sees further expansion into the US market and the development of their electronics category.”
 

 

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