Auction Technology Group shares tumble after debt-fuelled acquisition of Chairish
Shares in Auction Technology Group tumbled on Monday after the firm added to its debt pile with the acquisition of furniture marketplace Chairish in a $85m (£64m) deal.
The London-listed company said it had extended its revolving credit borrowing capacity to $275m alongside the deal, which was funded by a combination of cash and debt.
The acquisition of 12-year-old e-commerce firm Chairish, which is loss-making, is likely to add to the company’s debt pile in the short term.
Auction Technology shares sank as much as 21 per cent in early trade on Monday morning, wiping more than £100m from its market value. The stock is down by around a third since the start of the year.
The company said its acquisition “benefits from operational synergies and unlocks multiple growth opportunities,” adding that the synergies were estimated at $8m.
Chairish’s growth outlook
Chairish, which operates a marketplace for vintage furniture, décor and art, achieved a turnover of $51m in 2024 from commission, seller subscriptions, marketing fees and shipping revenue.
The San Francisco-based company has sold more than 1m items on its platform since it was founded, with around 80 per cent of sales derived from the US and the remainder from Europe.
The company has sought to capitalise on the wave of import tariffs imposed on US consumers by US President Donald Trump by highlighting that vintage furniture on its marketplace was “tariff-free”.
In May, first-time buyer counts rose nearly 11 per cent year over year, in signs the campaign was showing early signs of success.
Auction Technology said the company was expected to add to its adjusted pre-tax earnings in 2026 and add to its adjusted earnings per share in 2027.
CEO John-Paul Savant said Chairish’s “strong brand, curated inventory, and loyal community enhance our position in the Arts & Antiques category and broaden our reach across high-intent buyers and quality sellers.
“Together, we expand channel choice, increase marketplace liquidity, and unlock near-term commercial value – including meaningful cost synergies.”