GCA Altium advises Foxway on its acquisition of Flip4
Foxway has developed a market leading offering for mobile network operators, electronic retailers and distributors to utilise the benefits of electronic device trade-in as a core service to their customers. The group had a turnover of EUR 300m in 2020, having grown over 30% annually in recent years, and employs more than 700 people. Foxway will now enter the German market through the acquisition of Flip4, one of the leading recommerce businesses in Germany with around 40 employees and located close to Frankfurt. Flip4 sources a broad range of consumer electronics via its online presence as well as trade-in partnerships with leading electronic retailers in Germany and several other European countries, offering sustainable online and offline take-back solutions to its customers. In addition, Flip4 also helps B2B customers to reduce business costs related to their IT equipment.
Commenting on the transaction, Agnes Makk, Chief Executive Officer of Foxway’s Recommerce Division, said: “Foxway’s strategy in the recommerce segment is to further expand throughout Europe, and Germany is one of the largest markets in the region. Flip4 provides us with a successful platform and an experienced team to build a strong position in Germany.”
Martin Backman, Chief Executive Officer of Foxway Group, added: “Our ambition is to show that profitability and sustainability go hand-in-hand. We enable this by providing a unique business model and by changing people’s way of consuming IT devices. We are the leading recommerce company in the Nordic region, but in order to make a real impact we need to expand our focus to new markets. This expansion further into Europe is the next step.”
Flip4 will become an integrated part of Foxway’s fast-growing recommerce division, with the two founders of the company remaining on the board to support the firm’s growth, together with Agnes Makk, who will become Flip4’s third board member.
GCA Altium has previously advised Foxway (formerly known as Xllnc) on a series of deals and is a key partner in shaping their M&A, circular economy and ESG strategies.