MusicMagpie lists in £208m IPO, NVM reaps 12x return

Alessia Argentieri
22 April 2021

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NVM Private Equity has reaped a 12x return on its partial exit of MusicMagpie, following the company's IPO on London Stock Exchange's AIM.

The placing price was 193 pence per share, valuing MusicMagpie at a market capitalisation of £208m.

NVM generated proceeds of £72.5m from the exit and retained a 16.1% holding in the newly listed business, a shareholding worth £33.4m.

NVM first backed MusicMagpie in 2015, providing £6m in capital aimed at fuelling the company's growth and further development.

Following the deal, NVM partner Andy Leach joined the board of MusicMagpie and has since played an active role in shaping the business strategy. He will remain a director through to the company's admission to AIM.

This exit is the third divestment made by NVM in less than six months, following the sale of Agilitas in November 2020 – which generated an 8.4x return – and the sale of It's All Good in December 2020.

Company
Founded in 2007 and based in Stockport, MusicMagpie provides a platform for buying and selling used consumer electronics, including smartphones, tablets, consoles and personal computers, as well as books, CDs, DVDs and video games.

The company aims at providing its costumers with a sustainable way to buy, rent and sell refurbished consumer technology and physical media products.

Employing 750 staff, the business operates through two brands: MusicMagpie in the UK and Decluttr in the US. Its platform counts 7.2 million customer registrations worldwide.

MusicMagpie generated adjusted EBITDA of £13.9m from revenues of £153.4m in the year to 30 November 2020.

People
MusicMagpie – Steve Oliver (co-founder, CEO); Walter Gleeson (co-founder).
NVM Private Equity – Andy Leach (partner).