Liverpool-headquartered gifting and engagement company Appreciate Group has snapped up a County Durham-based gift card technology provider, in a deal which will accelerate its technology plans.
The company has acquired MBL Holdco, which specialises in end-to-end gift card processing and management services, from Redu Group.
MBL Holdco has a digital gift card mall enabling B2C and B2B customers to purchase gift cards directly from a catalogue of more than 160 high-street retailers.
It also has an SaaS offering, which is a fully white-labelled eCommerce platform that enables businesses to launch their own gift card websites.
The acquisition was completed on 24 June 2022 for an initial cash consideration of £1.65m, with a further £1.8m deferred for 12 months dependent on certain criteria being met.
The initial cash consideration is being met from Appreciate’s existing financial resources. The acquired business operationally will be self-funded and is expected to be cost-neutral to the group.
Ian O’Doherty, chief executive at Appreciate Group, said: “The acquisition of MBL rapidly accelerates the group’s technology plans and immediately enhances our capabilities, particularly in our corporate business, where we are already enjoying increased customer demand for our products.
“The MBL platform will help us improve the competitiveness of our offerings and bring forward opportunities that can deliver higher levels of growth. We look forward to working with the MBL team to enhance our proposition for our customers and create value for our shareholders.”
Adam Hobbs, head of retail partnerships at MBL, added: “MBL becoming part of Appreciate Group is positive news for customers and partners of both organisations.
“Both MBL and Appreciate Group see clear opportunities to bring together each other’s technology and market position to enhance the services and products they provide. The team at MBL is looking forward to working with Appreciate Group to realise its plans.”