Mad Paws (ASX:MPA) share price wagging its tail on acquisition news

Barking with joy following acquisition…
The post Mad Paws (ASX:MPA) share price wagging its tail on acquisition news appeared first on The Motley Fool Australia. –

The Mad Paws Holdings Ltd (ASX: MPA) share price is surging higher today after the pet services marketplace announced it is acquiring Waggly Club.

At the time of writing, the Mad Paws share price is trading hands at 19 cents, up 11.8%.

What’s lifting the Mad Paws share price?

Investors have been scrambling to buy shares in the pet services company today following its announcement this morning.

According to the release, Mad Paws has entered into a binding agreement to acquire Waggly Club. The company being acquired is described as “one of Australia’s largest dog treats and toys subscription businesses”

Waggly was launched by founder Kate Herbert in 2016, providing dog owners with an assortment of treats and toys monthly. These subscription boxes range in value from $45 to $52 per month and are tailor-made based on the dog’s age, chewing needs and size.

Waggly’s founder and CEO, Kate Herbert stated:

As we look to our next horizon, my aim is to scale Waggly and reach more and more dogs and their fur parents each month. To this end, I feel Mad Paws and Waggly are a perfect match.

The details

Mad Paws has agreed to acquire 100% of Waggly Club through a combination of cash and shares. Total cash consideration of $2 million will be paid upon completion of the acquisition, along with $1 million worth of Mad Paw shares. The issuing Mad Paws share price will be at 25 cents per share.

Furthermore, another $0.5 million will be payable dependent on Waggly Club achieving agreed revenue-based performance hurdles up until 31 December 2022.

Regarding Waggly’s financial performance, the company currently serves roughly 2,000 orders per month. Around 70% of the company’s revenue is subscription-based. From Fy20 to FY21, Waggly nearly doubled its revenue to $1.5 million.

The Waggly Club acquisition is not subject to conditions and is expected to be completed today, 8 June 2021.

The post Mad Paws (ASX:MPA) share price wagging its tail on acquisition news appeared first on The Motley Fool Australia.

Wondering where you should invest $1,000 right now?

When investing expert Scott Phillips has a stock tip, it can pay to listen. After all, the flagship Motley Fool Share Advisor newsletter he has run for more than eight years has provided thousands of paying members with stock picks that have doubled, tripled or even more.*

Scott just revealed what he believes could be the five best ASX stocks for investors to buy right now. These stocks are trading at near dirt-cheap prices and Scott thinks they could be great buys right now.

*Returns as of May 24th 2021

More reading

Why the PointsBet (ASX:PBH) share price could be in the buy zone
2 ASX shares that brokers reckon might be dividend traps

The battle for Vitalharvest (ASX:VTH) shares isn’t over yet!
2 ASX 200 shares with exposure to cloud computing

Why the Immutep (ASX:IMM) share price is marching higher today

Motley Fool contributor Mitchell Lawler has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

Trade The World Anywhere & Anytime!

Mobile app platform with over 50,000 global listed securities across 12 markets (over 70% global market capitalisation), right from your Android or iOS device.

Integrated with exclusive trading idea and investment analysis tools to help you find actionable insight on virtually every financial instrument across our 12 global markets, to help you optimise your trading strategies.

Refer Your Friends

Tell your friends about Monex and gift them FREE access to our trading tools.

We respect your privacy and will only send this one email notification to your friends. 

Share With Your Friends

Share on facebook
Share on twitter
Share on linkedin

Monex Trading Tools Access and Usage Terms

The Monex Trading Tools (referred to as ‘tools’ hereafter) are available to you inside your client portal;

To activate access to the tools, you must have a verified and approved trading account and have made a deposit of at least AUD $1000.

An active and funded account with a positive trading balance is required to continue to have access to the tools;

Although the tools are available to you indefinitely, Monex Securities may at it’s discretion disable access to the tools in the future;

Monex securities reserves the right to change these terms and conditions from time to time, as it sees fit, without notice.

Important Notice
iOS & Android App - 12 International Markets & Over 70% Global Market Cap. $0 Brokerage On US Trades. Click Here!