Magazine Luiza buys KaBuM e-commerce platform! for BRL 1 billion – Prime Time Zone

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Business expands the participation of the retail network in the technology segment; transaction also includes the issuance of 75 million shares

Paulo Whitaker/ReutersAcquisition aims to expand Magazine Luiza into the technology sector

O Luiza stores announced on Thursday, 15, the purchase of e-commerce platform KaBuM! for R$ 1 billion in cash installments plus the issuance of 75 million shares, making the company a subsidiary of the retail chain. The agreement also provides for a subscription bonus of 50 million shares, subject to the achievement of targets. “With the acquisition, Magalu reinforces the strategic pillar of new categories, with an assortment that is extremely complementary to the current one and with enormous growth potential”, informed the retailer in a material fact. “In addition, together with the recent acquisitions Jovem Nerd and CanalTech, KaBuM! and Magalu will be able to offer a complete shopping, content and entertainment experience for technology lovers.” The closing of the deal depends on the approval of the Administrative Council for Economic Defense (Cade) and the shareholders of Magalu.

Founded in 2003, KaBuM! was one of the first portals of e-commerce in the country and became a reference in technology and games. According to the note, the platform has more than 2 million active customers, with more than 20 thousand different items in stock. The company is also one of the forerunners of electronic sports in Brazil, popularly known as eSports, and was responsible for creating one of the main League of Legends teams in the country. In the message to the market, Magalu stated that sales of the platform grew 128% in 2020, compared to 2019. In the first years of 2021, the advance was 62%. “Over the past 12 months, KaBuM! exceeded the R$3.4 billion mark in gross revenue. In the same period, with a highly efficient business model, KaBuM! obtained a net profit of R$ 312 million”, informed the company.