The Kogan.com Ltd (ASX: KGN) share price will be one to watch today after the ecommerce company expanded its offering with an acquisition.

What has Kogan acquired?

This morning Kogan announced that it has acquired replica furniture and homewares retailer Matt Blatt.

Matt Blatt is a family-run business that was founded in 1981. In FY 2019 it recorded $46.5 million of revenue, of which ~20% to 25% came from its online business.

In March the company was in financial distress because of the coronavirus pandemic and revealed to Inside Retail that it had called in advisors to facilitate a potential sale. A number of parties were believed to be interested, but Kogan has proven to be the successful suitor.

It has acquired the company’s intellectual property and goodwill for a purchase price of $4.4 million. This has been funded by the company’s cash reserves.

Based on FY 2019’s online sales of ~$10.45 million, this represents an attractive multiple of 0.42x sales. As a comparison, Kogan’s shares are changing hands for 1.45x FY 2019 gross sales.

What now?

Kogan will relaunch the business as an online-only offering and go head to head with the likes of Adairs Ltd (ASX: ADH) and Temple & Webster Group Ltd (ASX: TPW).

Kogan’s founder and CEO, Ruslan Kogan, commented: “We are pleased to bring the iconic Matt Blatt brand into new ownership, and relaunch the business as an online-only offering. Our acquisition of Matt Blatt gives us a springboard from which to expand our reach in the furniture and homewares market.”

“We will be drawing on Matt Blatt’s decades of industry expertise and combining it with Kogan.com’s technology, systems and infrastructure to deliver a market-leading offering. We look forward to serving and delighting furniture and design lovers all over Australia,” the chief executive concluded.

More reading

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• This ASX growth share has rocketed 150% higher since March. Is it too late to invest?
• With Aussie wages set to fall, could ASX 200 shares follow?

James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of Temple & Webster Group Ltd. The Motley Fool Australia owns shares of and has recommended Kogan.com ltd. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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If you are looking for market-beating returns over the next decade, then the three growth shares listed below could be the ones to buy.

I think their strong growth prospects means that investors could at least double their money with them over the next 10 years.

Here’s why I would buy them:

Altium Limited (ASX: ALU)

I think Altium has the potential to deliver very strong returns for investors over the next decade. This is due to its high quality electronic design software, its massive market opportunity, and its exposure to the rapidly growing Internet of Things (IoT) market. This year Altium expects to achieve 50,000 subscribers. After which, it is aiming for 100,000 subscribers by FY 2025. Combined with its other growing businesses such as NEXUS and Octopart, I feel Altium is well-placed to grow its earnings at a rapid rate for many years to come.

Domino’s Pizza Enterprises Ltd (ASX: DMP)

Another great option could be Domino’s Pizza. Its growth other the last few years as been a little up and down, but I remain confident the long term trajectory is upwards. Especially given its same store sales and store expansion goals. Over the next five years the pizza chain operator is aiming to deliver annual same store sales growth of 3% to 6% and annual organic new store additions of 7% to 9%. If it can at least maintain its margins, this should support strong earnings growth over the next decade.

Pushpay Holdings Ltd (ASX: PPH)

A final growth share to buy for market-beating returns is Pushpay. The donor management system provider has just released its full year results and revealed a stunning ~1,500% increase in EBITDAF in FY 2020, The good news is that more strong growth is expected over the next 12 months, with management aiming to double its EBITDAF in FY 2021. But it isn’t about to rest on its laurels any time soon. The company has set itself a target of winning a 50% share of the medium and large church market. This represents a US$1 billion revenue opportunity for Pushpay. This compares to the operating revenue of US$127.5 million it recorded in FY 2020.

More reading

• 3 top ASX 200 shares every investor should buy
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• Top brokers name 3 ASX 200 shares to buy right now

Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia owns shares of and has recommended PUSHPAY FPO NZX. The Motley Fool Australia owns shares of Altium. The Motley Fool Australia has recommended Domino’s Pizza Enterprises Limited. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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On Thursday the S&P/ASX 200 Index (ASX: XJO) followed the lead of U.S. markets and sank notably lower.

While the majority of ASX shares tumbled lower with the market, some fell more than most.

Three ASX 200 shares that hit multi-year lows are listed below. Here’s why they are down in the dumps:

Bank of Queensland Limited (ASX: BOQ)

The Bank of Queensland share price sank to a 20-year low of $4.51 on Thursday. Weakness in the banking sector, a dilutive capital raising, the deferral of its dividend, and a weak half year result have all weighed heavily on Bank of Queensland this year. In respect to its results, the regional bank posted half year cash earnings after tax of $151 million. This was down 10% on the prior corresponding period. Judging by its share price performance, investors appear to believe things will get worse before they get better because of the pandemic.

Orocobre Limited (ASX: ORE)

The Orocobre share price dropped to a multi-year low of $1.82 yesterday. This lithium miner has been sold off again this year due to weak prices of the battery making ingredient and the forced shutdown of its Argentinian operations during the pandemic. Unfortunately for Orocobre and its peers, many analysts believe that a recovery in the lithium price has been pushed back because of the crisis. This could mean another difficult 12 months for Orocobre.

Unibail-Rodamco-Westfield (ASX: URW)

The Unibail-Rodamco-Westfield share price tumbled to an all-time low of $3.65 on Thursday. This latest decline means the shopping centre operator’s shares have lost 68% of their value of the last 12 months. Unibail-Rodamco-Westfield’s shares have come under significant pressure during the pandemic because the majority of its shopping centres have been forced to close. In addition to this, it has warned that it is difficult to judge the impact on the contractual obligations of its retailers and to estimate the effect of any case-by-case support measures it may offer tenants.

More reading

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• ASX 200 drops 1.7%, Xero reports a profit
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• This ASX growth share has rocketed 150% higher since March. Is it too late to invest?

Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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