Endless Gain, the ecommerce company founded by Neil McKay is set to be acquired for £3m.
Columbus has submitted a conditional offer to acquire the company as part of its New Heights strategy – to expand its suite of services and grow in “key geographic markets.”
“By acquiring Endless Gain, we reinforce our market position within e-commerce and strengthen our footprint in the UK retail industry,” explained CEO & President Søren Krogh Knudsen.
“This represents a significant step in Columbus’ journey to becoming an end-to-end partner for retail customers,”
McKay set up Endless Gain in 2016, having sold his previous company, Lakestar to McCann for a sum believed to be in excess of £10m.
The Manchester ecommerce company employs 25 staff and works with brands including Dreams, Jigsaw, Shark Ninja, and Moss Bros.
The acquisition will mean that Columbus’ global digital commerce team would grow to more than 250 consultants.
“We are thrilled to join forces with Columbus, a move that marks a significant milestone in Endless Gain’s journey.” said Endless Gain CEO McKay.
“By aligning with Columbus’ strategic vision, we are excited to expand our reach, enhance our offerings, and contribute to Columbus’ growth trajectory. Our commitment to innovation and excellence in optimisation and experimentation will now have a broader canvas, benefitting not only our existing clients, but also opening doors to new opportunities in various global markets. We look forward to this new chapter, where our combined strengths will create unmatched value for our clients and set new benchmarks in the industry.”
McKay said that Endless Gain had ambitions to expand to the Nordic countries where Columbus already has a strong presence with close to 1,000 employees.
For 2023 Endless Gain expects a revenue in the range of £1.9m and an EBITDA of around £0.5m.
The agree acquisition price is £3m, of which £1.5m will be paid at closing, with the remaining amount dependent on reaching agreed earning targets and is expected to be paid over the next 3 years.
The acquisition is conditional on “a few employee related conditions.”
The deal is set to be completed by 3rd January 2024.