Changes are happening - please bear with us while we update our site.

Changes are happening - please bear with us while we update our site. Click here to give us your advice and feedback.

Kogan (ASX:KGN) share price on watch with Brosa acquisition

The Kogan.com Ltd (ASX:KGN) share price is in focus after the e-commerce ASX share announced the acquisition of Brosa.

The Kogan.com Ltd (ASX: KGN) share price is in focus after the e-commerce ASX share announced the acquisition of Brosa.

Brosa is reportedly one of Australia’s largest online luxury furniture retailers, though it was in administration.

Kogan buys Brosa

The ASX share is spending $1.5 million plus giving logistics support for thousands of customers that have undelivered orders.

Prior Brosa customers who have paid for undelivered goods will be contacted with fulfillment options.

In FY22, Brosa generated $75 million of revenue, and it has around 500,000 subscribers. Kogan said that the business was recently valued at over $60 million.

This acquisition will “significantly expand Kogan.com’s share of the online furniture market.”

Kogan will relaunch Brosa.com.au and offer to resolve unfulfilled customer orders, where Brosa has the product in stock. These customers will be contacted by Kogan.com about arrangements in the coming weeks.

This deal will be funded by the company’s cash reserves.

The company will be buying the intellectual property, goodwill and stock, but excludes all leases and other liabilities.

Management comments

Kogan.com chief operating officer and chief financial officer David Shafer said:

The acquisition of Brosa by Kogan will broaden the online furniture offering of the Kogan Group, providing unprecedented range and value to Brosa customers, while also expanding the range of furniture and homewares available to Kogan customers. We are pleased to be able to offer a lifeline to Brosa customers, to be able to save the Brosa brand, and to relaunch Brosa.com.au very shortly. Following years of investment in brand-building and marketing, Brosa is a well known online furniture brand in Australia, and we are delighted to be able to bring the brand within the Kogan Group.

Summary thoughts on Kogan shares

This seems like a smart bit of business by Kogan. Brosa joins Dick Smith, Matt Blatt and Mighty Ape within the Kogan group of businesses. It builds up the company’s brand portfolio.

If the business keeps generating tens of millions of dollars of revenue, then it could be a great deal.

I’m not sure if the Kogan share price is worth going for. Ignoring the COVID period, in 2019 it was demonstrating good profit margin growth as it scaled. However, I’m not sure if it will be able to get back to that – we’ll have to see if it can get over the current difficulties.

For now, I think there are other ASX growth shares I’d rather buy.

$50,000 per year in passive income from shares? Yes, please!

With interest rates UP, now could be one of the best times to start earning passive income from a portfolio. Imagine earning 4%, 5% — or more — in dividend passive income from the best shares, LICs, or ETFs… it’s like magic.

So how do the best investors do it?

Chief Investment Officer Owen Rask has just released his brand new passive income report. Owen has outlined 10 of his favourite ETFs and shares to watch, his rules for passive income investing, why he would buy ETFs before LICs and more.

You can INSTANTLY access Owen’s report for FREE by CLICKING HERE NOW and creating a 100% FREE Rask Account.

(Psst. By creating a free Rask account, you’ll also get access to 15+ online courses, 1,000+ podcasts, invites to events, a weekly value investing newsletter and more!)

Unsubscribe anytime. Read our TermsFinancial Services GuidePrivacy Policy. We’ll never sell your email address. Our company is Australian owned.

Information warning: The information on this website is published by The Rask Group Pty Ltd (ABN: 36 622 810 995) is limited to factual information or (at most) general financial advice only. That means, the information and advice does not take into account your objectives, financial situation or needs. It is not specific to you, your needs, goals or objectives. Because of that, you should consider if the advice is appropriate to you and your needs, before acting on the information. If you don’t know what your needs are, you should consult a trusted and licensed financial adviser who can provide you with personal financial product advice. In addition, you should obtain and read the product disclosure statement (PDS) before making a decision to acquire a financial product. Please read our Terms and Conditions and Financial Services Guide before using this website. The Rask Group Pty Ltd is a Corporate Authorised Representative (#1280930) of AFSL #383169.

At the time of publishing, Jaz does not have a financial or commercial interest in any of the companies mentioned.
Skip to content