D2C bed-in-a-box brand eve Sleep has confirmed that it is in early discussions regarding a potential merger by way of the acquisition of rival brand Simba, which would consolidate its share in the online mattress sector.
eve states that if the merger proceeds, it could constitute a reverse takeover under the AIM Rules for Companies – so the consent of shareholders would be required if it were to go ahead. Trading has been temporarily suspended, and an announcement will be made in due course.
Although well funded, both brands have attracted scrutiny for the sustainability of their business models, highlighted by an ongoing lack of profitability.
