Medigus (MDGS) Subsidiary Smart Repair Pro Signed Agreement to Purchase Leading Fitness Toys Brand in its Category on Amazon Marketplace for $4 Million
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Medigus Ltd. (Nasdaq: MDGS), a technology company engaged in advanced medical solutions and innovative internet technologies, today announced that its 50.1% owned subsidiary, Smart Repair Pro, Inc., a data-driven e-commerce company operating on the Amazon Marketplace, signed an agreement to purchase assets of a leading fitness toys brand in its category on the Amazon Marketplace.
The fitness toys brand was established in August of 2019, according to unaudited sales data provided to Smart Repair Pro the revenues for 2020 totaled $2.5 million with a net profit of approximately $942,000, representing a margin of approximately 40%. Currently, the brand is sold only at Amazon Marketplace in the U.S., while Smart Repair Pro intends to expand it on Amazon Marketplace in the territories Smart Repair Pro operates in.
Smart Repair Pro agreed to pay $4 million for the purchase of the assets. The closing of the purchase agreement is subject to customary closing conditions, including an inspection of the assets. 80% of the purchase price, or $3.2 million, will be financed by Medigus as a loan to Smart Repair Pro.
To date, Smart Repair Pro and Purex Corp. own and operate 3 brands on Amazon. Smart Repair Pro recently announced the signing of the acquisition of two additional new brands. Should all purchases be completed, Smart Repair Pro and Purex Corp. will own and operate six different brands on the Amazon Marketplace.
Should all agreements be finalized, Smart Repair Pro estimates a $10 million in revenues in 2021 with approximately 40% net profit.
Utilizing its vast knowledge and unique technology, Smart Repair Pro identifies existing brands and stores on the Amazon Marketplace for acquisition, and in turn revitalizes them in terms of marketing, ratings and sales. The company operates in a number of marketplaces, including the U.S., Canada, Australia and Europe.
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