Online electricals retailer AO World has announced plans to acquire second-hand technology retailer MusicMagpie in a deal valued at £10 million, marking a significant move to expand its presence in the consumer technology market.

The acquisition, which offers MusicMagpie shareholders 9.07 pence per share, represents a 58 per cent premium on the company's closing price on Tuesday. The deal has received unanimous recommendation from the MusicMagpie board.

John Roberts, chief executive officer of AO World, emphasised the strategic importance of the acquisition, stating: "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."

The merger aims to leverage operational synergies between the two companies, with Roberts highlighting the potential for MusicMagpie to benefit from AO's existing supply channels, potentially reducing acquisition costs and enabling scaled refurbishment operations.

Steve Oliver, chief executive officer and co-founder of MusicMagpie, expressed enthusiasm about the merger: "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."

The development comes after telecommunications group BT and investment firm Aerilius Group withdrew from separate pursuit attempts of MusicMagpie last year.

Geoff Cooper, non-executive chairman at AO World, highlighted the complementary nature of the businesses, noting that the acquisition would enable broader customer offerings while advancing sustainability objectives.

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