MAGAZINE LUIZA S.A.
Corporate Taxpayer ID: 47.960.950/0001-21
Company Registry (NIRE): 35.3.0010481.1
Magazine Luiza S.A. ("Company" or "Magalu"), pursuant to Article 157, §4º of Law nº 6.404, dated December 15th, 1976, and pursuant to Instruction n° 358 of the Brazilian Securities and Exchange Commission, dated January 3, 2002, hereby announces to its shareholders and the market in general that it has entered into, on this date, a Share Purchase and Sale Agreement ("Purchase and Sale Agreement") with the shareholders of Kabum Comércio Eletrônico SA, a privately held corporation, headquartered in the City of Limeira, State of São Paulo, ("Kabum"). The purpose of the Purchase and Sale Agreement is the acquisition, by Magalu, of all shares issued by Kabum ("Acquisition" or "Transaction").
KaBuM!: the largest computer, games and accessories e-commerce platform in Brazil
Founded in 2003, KaBuM! was one of the pioneers of e-commerce in Brazil and is a reference in computers, games and accessories, offering its more than 2 million customers the latest new releases from around the world. With over 20,000 different items in stock, KaBuM! has a complete assortment of computers, hardware (video cards, memory, processors, sound cards, monitors), peripherals (keyboards, mouses, cameras, cables, adapters), products for the gamer universe (video games, chairs, tables, consoles) and for the smart home (cameras, lamps, virtual assistants, automation tools, and other accessories).
KaBuM! is also one of the pioneers of electronic sports in Brazil, having founded one of the largest League of Legends teams in the country. KaBuM! Sports is a four-time national champion and was the first Brazilian team to participate in the world championship. In addition to League of Legends, KaBuM! Sports also supports other e-sports initiatives, including: Counter Strike, FIFA and Free Fire.
With KaBuM!, hardware, peripherals and games #temnomagalu (#TheyHaveItAtMagalu)
With an assortment that is highly complementary to that of Magalu, the acquisition of KaBuM! represents a significant step towards Magalu's strategic objective of expanding into new categories, while simultaneously increasing the Company's customer base and purchase frequency. Additionally, together with the recent acquisitions of Jovem Nerd and CanalTech, KaBuM! and Magalu will be able to offer a complete shopping, content and entertainment experience for technology and gaming enthusiasts.
Upon the completion of the acquisition, Magalu and KaBuM! will be able to take advantage of a number of opportunities: (i) KaBuM!'s products will be made available for sale on Magalu's SuperApp; (ii) KaBuM! will be able to take advantage of all of the benefits of Magalu's multichannel model, such as in-storepick-up; (iii) several Magalu product lines, such as smartphones and TVs, will complement KaBuM!'s assortment; and (iv) Magalu's financial products, such as credit cards and insurance, will be offered to KaBuM!'s customers.
KaBuM!'s sales more than doubled in 2020, driven by the pandemic to grow 128% compared to 2019. In the first 5 months of 2021, KaBuM! continued to evolve at an accelerated pace, with 62% growth compared to the same period in 2020. In the last 12 months1, KaBuM! surpassed the R$3.4 billion2 mark in gross revenue. During the same period, KaBuM! leveraged its highly efficient business model to obtain a net profit of R$312 million.