What Kogan paid for Dick Smith brand, web address, database

Kogan has revealed how much it paid for Dick Smith's brand and customer database: $A2.6 million.

The intellectual property was all that remained following the closure of its 430 stores across Australia and New Zealand, an inventory fire sale and the laying off of around 3000 staff.

At the time of its December 2013 listing on the ASX, the retail chain was valued at $A520 million.

The amount is revealed in Australasian online retailer's prospectus, released today ahead of its listing on the ASX.

1.5 million names
For its money, Kogan got the names of 1.5 million Dick Smith customers across Australia and New Zealand, including those who signed up for email newsletters during the period of frenzied sales after the chain went into administration last December.

Around 200,000 were already on Kogan's books, giving it a net gain of 1.3 million.

Brand, goodwill
And, for whatever it's worth (not much, according to Horizon Research), Kogan also acquired Dick Smith's brand and goodwill as part of the $A2.6 million deal.

Kogan also took over the Dick Smith website addresses for Australia and New Zealand, which it took over on June 1 (both have become essential clones of Kogan's own sites for Australian and New Zealand, but with a yellow Dick Smith border and brand.

After Privacy Commissioner John Edwards focussed on the Dick Smith sale, Kogan pledged to give all Dick Smith customers the option to unsubscribe from the database (and NBR, as a Dick Smith customer, duly received the chance to opt-out).

Dick Smith collapsed was placed in administration and receivership shortly after Christmas. The company owed $137 million to secured lenders including Westpac Banking Corp and the National Australia Bank and had total debts of around $250 million. 

Kogan's IPO
Unfazed by Dick Smith's IPO turning to custard, Kogan is looking to raise $A50 million with an initial public offer that values the retailer at $A168 million.

The retailer is projecting revenue will increase 20% next year to $A241.2 million (after a mere $A80,0000 gain last year), and that net profit will increase from $A400,000 to $A2.5 million.

The adventurous can download a prospectus from www.kogancorporate.com.

The company is due to list on June 30.