Card Factory has agreed to acquire online personalised card and gift retailer Funky Pigeon from WH Smith for £24 million, in a strategic move to significantly boost its digital offering.
Funky Pigeon, operating from Guernsey and Bristol, specialises in personalised cards and gifts, generating average annual sales of £32 million. Card Factory, which boasts over 1,000 stores across the UK, aims to expand its online business.
The greeting card chain confirmed Funky Pigeon’s technology platform is set to become the basis for its digital operations in the UK and Ireland "over time".
It claims the deal will see it become the UK’s second largest online card and related gift retailer.
But it comes just six months after Card Factory shut its online gifting site gettingpersonal.co.uk at the end of January.
Shares in Card Factory lifted 7% in noon trading on Tuesday.
Darcy Willson-Rymer, Card Factory’s chief executive, said: “This acquisition marks a significant step forward in Card Factory’s strategy to build a scaled, competitive digital presence in the celebration occasions market.
“It brings a high-quality platform and proven technology, accelerating our ability to compete in the direct-to-recipient card and gifting segment, so supporting our ambition to become the leading omnichannel retailer in our sector.”
The deal comes as WH Smith continues to focus attention on its stores based at travel sites, having recently sold off its 230-year-old high street retail business to investment firm Modella Capital.
Funky Pigeon was hit by a cyber attack in April 2022 that left it unable to process orders for several days.
Card Factory said it plans to make operational savings by using Funky Pigeon’s order fulfilment capability in Guernsey for personalised cards, and Card Factory’s factory and order-fulfilment operation in Baildon, West Yorkshire, for card and gift orders.
