Eve Sleep cancels merger with Simba as it warns of revenue hit

Eve Sleep has called off its proposed merger with Simba Sleep as it said ‘now is not the right time’ to make an acquisition.

Eve has decided to focus on its own business recovery instead of proceeding with takeover talks.

“The board of Eve has decided that now is not the right time to pursue the potential merger and that it is more appropriate to focus on the Eve rebuild plan,” the company said.

The company will now unfreeze its shares now that the talks have closed.

James Sturrock, CEO of Eve, said: “The opportunity to create a leading sleep wellness brand remains undiminished,”

“I am confident that Eve’s rebuild strategy, centred around a differentiated brand positioning, expanded product range, lower friction customer experience, combined with increasing brand awareness sets out a clear path to building a profitable business, which delivers for shareholders.

“We will continue to examine ways of accelerating Eve’s rebuild strategy and the move to profitability, through organic and inorganic growth.”