Aggregator GoCompare has accepted an offer from media giant Future Plc, which values the business at more than half a billion pounds
Aggregator GoCompare has accepted a £594m takeover bid by listed media company Future Plc, it announced today.
Future is buying GoCo’s entire share capital in exchange for cash and a share swap.
The deal will mean GoCo shareholders will own 19% of the combined group.
Future has a market capitalisation of £1.9bn.
Future said the deal ”will significantly strengthen the Future Group’s proposition of seeking to address the growing consumer demand for informed and value driven purchasing decisions enabled by intent driven content”.
”The Future directors believe the combination provides a truly unique opportunity to capitalise on the combination of Future’s deep audience insight with GoCo Group’s expertise in price comparison and the proprietary technology of both the Future Group and the GoCo Group of companies.”
Future listed the following strategic reasons behind the bid:
- Creating a leading global specialist media platform that drives intent;
- Adds key capabilities and adjacent routes to monetisation;
- Substantially growing the addressable market;
- Lower customer acquisition costs through combined expertise;
- Enhanced proposition for advertisers and lead generation partners;
- Integrated technology platforms built for innovation, driving intent.
It also pinpointed several financial benefits:
- The Future board expects the combination to result in a number of financial benefits:
- Attractive growth, margins and significantly cash generative;
- Materially earnings enhancing and strong returns;
- Enhanced scale and the opportunity to invest in growth opportunities; and
- Cost synergies of approximately £10m per annum on a recurring run-rate basis.
The deal will now go to the GoGo shareholders for approval and is expected to complete in the first quarter of 2021, the companies said.
GoGo chairman Peter Wood said ”in just four years since its de-merger from esure Group, GoCo Group has created significant shareholder value while successfully transforming from a UK price comparison website into a technology-led business with leading brands focused on helping consumers save time and money sustainably.
”Future’s market leading global platform for specialist media and content offers GoCo Group a unique opportunity to materially accelerate its growth plans, reduce customer acquisition costs and increase its addressable market.”
Meanwhile, Future chairman Richard Huntingford said the deal ”represents a compelling mixture of complementarity and growth opportunity.
”We believe that the combination is a unique strategic opportunity to create a leading global specialist media and intent platform, capitalising on the growing consumer demand for informed and value driven purchasing decisions enabled by intent driven content, which will deliver strong returns for all shareholders.”