SurfStitch has bought its own surf board company

Jesse Polock of Australia at Cape Solander in Kamay Botany Bay National Park in Sydney. Mark Kolbe/Getty Images

SurfStitch has bought the board maker Surf Hardware International for $23.7 million.

The cash deal gets the online surf wear company the key brands FCS, Gorilla, Hydro and Softech, all popular globally with board riders.

The acquisition aligns with SurfStitch’s aim to capture and influence customers at all points of the surf and action sports lifestyle cycle.

SurfStitch, which is in a trading halt, also announced a $50 million capital raising at $1.95 per share to repay debt and the cost of the acquisition. The shares last traded at $2.06.

The company wants to be the Netflix and Amazon of extreme sports, the centre of a digital ecosystem around surfing and action sports.

In May this year, the high growth retailer bought a surf weather site, Magicseaweed, and a global online news magazine, Stab Magazine, for $13.8 million cash and 4.8 million shares.

Late last year SurfStitch raised $65 million from a group of Australian and offshore investors.

SurfStitch was launched out of a garage in Sydney’s Northern Beaches by founders Justin Cameron and Lex Pedersen in 2007.

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