Greeting card giant Moonpig has announced the proposed acquisition of Buyagift, the gift experiences platform, for £124m.

The acquisition accelerates Moonpig’s strategy of becoming a leader in the gifting market, and gives them entry into the £6bn experiences segment.

Buyagift is the UK’s leading gift experiences platform with the number one and number three brands in the sector, Buyagift and Red Letter Days.

The company offers its 3m customers the broadest range of experiences across the UK, with over 4,400 partners across categories including short stays, theatre and family days out.

Last year, it posted revenues of £44m, with an EBITDA of £14m with a cash conversion rate of over 100 per cent.

The transaction will triple Moonpig’s gifting range immediately, with no inventory.

Meanwhile, Moonpig will apply its data and technology capabilities to the Buyagift brands to accelerate growth

As a result of the acquisition, Moonpig now expects revenue for the enlarged Moonpig Group in its full year results to be approximately £350m.

Moonpig chief executive Nickyl Raithatha commented: “There is strong strategic rationale for the transaction, and compelling financial benefits. Buyagift is profitable and highly cash generative, with a proven track record of strong growth and we are excited by the ways that we can further transform the business using the group’s proven playbook.”

“We see significant potential for the cross-selling of gifting experiences to Moonpig’s loyal customers. We look forward to working with the Buyagift team to deliver an enhanced proposition for our customers and to create value for our shareholders.”

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Moonpig to snap up gifting group Buyagift in £124m deal