Kogan goes shopping: buys Kiwi online retailer Mighty Ape for $122 million

Online retailer Kogan.com is buying New Zealand competitor Mighty Ape for $122.4 million.

Mighty Ape’s focus is on gaming, toys and other entertainment categories, and the category leader and is expected to generate revenue for full year FY21 (to 31 March 2021) of around AU$137.7 million, with a gross profit of AU$45.7 million and EBITDA of AU$14.3 million.

It has more than 690,000 unique customers.

The headline purchase price of AU$122.4 million is payable over four tranches and subject to variation under earn out through to delivery of FY23 financial results.

Mighty Ape founder Simon Barton and executive team to be retained with incentives until at least delivery of FY23 financial results.

Kogan.com COO and CFO David Shafer said the two companies had similar histories and shared values.

“Mighty Ape has more than a decade of experience and track record of delighting Kiwi customers,
and has become one of New Zealand’s most trusted brandss,” he said.

“Mighty Ape will give us significant scale in New Zealand and further strength across a variety of operational dimensions. We will be drawing on Mighty Ape’s deep experience in gaming, toys, other entertainment product categories and the New Zealand market, and
combining this experience with Kogan.com’s sourcing, technology, systems, infrastructure, and marketplace capabilities, to further enhance the group’s already market-leading offering across the Tasman.”

Mighty Ape Founder and CEO Simon Barton said: “Combining with Kogan.com will assist Mighty Ape to expand our product range and improve our customer experience. I am excited about working with Ruslan and David, and the broader Kogan.com team — who have built an incredible business — while also aligning and creating more growth opportunities for the incredible team that helped build Mighty Ape to be New Zealand’s most trusted retailer brand.”