AO snaps up secondhand tech specialist Music Magpie in deal to ‘enhance its consumer tech offering’

In an announcement to the City this morning, AO said it had agreed a cash offer with Music Magpie valuing it at £10m. 

AO said Music Magpie had ”complementary business models focused online and on customer service” and added that the acquisition “will augment its capability and value capture in the mobile and consumer technology categories”.

The acquisition is expected to be completed in the first quarter of 2025. 

AO chief executive 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 Music Magpie represents a significant enabler in unlocking value through our reverse supply chain.

”Moreover, Music Magpie stands to leverage our existing supply channels, which could lower its cost of acquisition and allow us to scale refurbished technology with operational precision. Music Magpie’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 [Oliver, Music Magpie co-founder and chief executive] and the Music Magpie team into the AO family and to realise the potential that our combined efforts can unlock.”

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 Music Magpie 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 Music Magpie as part of the next stage of the business’ development.”