Card Factory has agreed to acquire online personalised greetings card business Funky Pigeon from WHSmith for £24m.
The deal values the platform at an enterprise value of £26m and is expected to complete before the end of the year, subject to regulatory approval.
The Bristol- and Guernsey-based business operates the funkypigeon.com website, specialising in personalised cards and attached gifting services. It generated around £32m in annual revenue and £5m EBITDA on average over the past two financial years.
Card Factory said the acquisition will accelerate its digital strategy by providing a platform for online growth in the direct-to-recipient card and gifting market.
The company expects Funky Pigeon’s platform to become the core digital offering for its UK and Ireland business over time.
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Card Factory chief executive Darcy Willson-Rymer 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.
“Together, the enlarged customer base will benefit from a richer, more convenient customer proposition, combining the strength of our nationwide store estate and wider celebrations offer with Funky Pigeon’s exceptional digital experience.”
“Operational efficiencies, fulfilment synergies, and a unified technology platform will provide the data needed to develop deeper insights into the customer journey, enabling us to build a stronger, more integrated omnichannel business.
“The board and wider Card Factory team look forward to welcoming Funky Pigeon colleagues to the group.”
WHSmith agreed to sell Funky Pigeon following a strategic review and the earlier sale of its high street business to Modella Capital.
The company said the sale fits with its focus on travel retail, describing itself as a “pure play global travel retailer” targeting growth opportunities in key markets.
Card Factory said its expectations for mid-to-high single-digit sales and adjusted pre-tax profit growth in FY26 remain unchanged. Group sales for the five months to 30 June increased by mid-single digits year-on-year.
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