Mattress brand Simba beds down with new Canadian owner

A mattress-maker which raised tens of millions of pounds before being bailed out during the slump in technology company valuations is being sold to a Canadian peer.

Sky News has learnt that Simba Sleep, which is chaired by Asda boss Allan Leighton, has struck a deal to be taken over by a trade buyer, thought to be the privately owned group Sleep Country. An agreement about the transaction is understood to have been reached in recent weeks.

Money latest: Uber making big changes to how you pay Previously a listed company, Sleep Country is now owned by Fairfax Financial Holdings, and trades from hundreds of stores across Canada. One source said Simba's new owner would seek to grow its brand outside the UK.

The deal - the value of which was unclear on Wednesday - comes after Simba raised huge sums of money to fund its international expansion, before being forced to slash its valuation. At one point, the company was promoted by the then Real Madrid footballer Gareth Bale, and had outlined ambitious growth plans for its patented 'sleep technology'.

In 2020, it raised $24m (£18m) in a deal with Cartesian Capital, a private investor. Read more from Sky News:China moves to ease tariff pain ahead of US trade war talksPlans to expand massive offshore windfarm under threat The deal with its new Canadian owner is said to comprise an up-front initial payment, with further payments to be made in the coming years depending upon the performance of the business.

Last summer, the Competition and Markets Authority (CMA) announced that it had secured changes to Simba's online sales practices amid concerns that the company "may have misled customers about price reductions and put unfair pressure on them to make quick purchases". Simba Sleep declined to comment on the deal..