Kogan buys furniture trader Matt Blatt
Online shopping trader Kogan has bought family-run furniture and homewares company Matt Blatt for $4.4 million and plans to operate the business as an e-commerce firm.
Matt Blatt, which sourced its replica products from Asia, collected $46.5 million in revenue last financial year, and up to 25 per cent came from online sales.
The business closed its 15 stores due to COVID-19 in late March but has continued trading through its website.
Chief executive Ruslan Kogan said Matt Blatt would remain an online-only operation.
The acquisition, which was funded from cash reserves, will help Kogan extend its reach into the furniture and homewares market.
RBC Capital Markets analyst Tim Piper said the site offered Kogan's range as well as those of third-party `marketplace' sellers.
Kogan's marketplace service allows third-parties to list goods for sale in a similar way to eBay.
Mr Piper said the acquisition gave these sellers another place to sell their goods.
Kogan also gains a database of up to 100,000 customers.
Many Australians are yet to buy homewares and furniture online, but the shift is well underway in the US and Europe.
There was plenty of opportunity in this market for Kogan, according to Mr Piper, which had already benefited competitors such as Temple and Webster.
Kogan shares were higher by more than four per cent to $8.90 at 1416 AEST.
Kogan shares have risen by 12.65 per cent since January 1, despite a wider market downturn.
In February, Kogan reported a 20 per cent jump in first-half profit and shareholders received an increased dividend of 7.5 cents per share.
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