Medigus Ltd. (NASDAQ: MDGS) revealed that its unit Smart Repair Pro has signed an asset purchase deal with a fitness toy brand in its category on the Amazon Platform. Medigus Ltd has 50% holdings in Smart Repair Pro, Inc. A sale report which was not officially authorized has been sent to Smart Repair Pro, Inc.
The report disclosed that the toy brand’s revenue was stood at $2.5 million and has a net profit of nearly $ 942,000. It signifies a margin of nearly 40%. Presently, the brand is selling its product on the Amazon marketplace in the US. Smart Pro Inc is preparing to grow its business on the Amazon market in the areas it is currently operating.
As per the deal, Smart Pro Inc. will bound to pay $4 million for the buying of the assets. The purchase deal is dependent on certain closing conditions. The deal will also execute after the examination of the assets of the Toy brand. Furthermore, it has been disclosed that out of $4 million 3.2 million will be paid by Medigus as a loan to the Smart Repair Pro.
Purex Corp. and Smart Repair Pro currently retain and manage 3 brands on Amazon. Recently, Smart Repair Pro Inc. has acquired two additional brands. After the execution of all these brands, Purex Corp. and Smart Repair Pro will own and run about six different on the Amazon market. After acquiring all the brands, firms anticipate generating revenues of $10 million in 2021 with nearly 40% net profit.
Smart Repair Pro has used its skills and expertise to identify the potential brands and stores on the Amazon marketplace for buying. The firm runs in many marketplaces, including the U.S., Canada, Australia, and Europe.