Thu, 26 Nov 2020 | BUSINESS SALE
Magazine publisher Future has agreed a £594 million cash-and-shares takeover of comparison website GoCompare. Future has warned that job losses among GoCompare’s 400-strong staff are likely, as it looks to achieve £10 million in cost savings by stripping out duplication in the head office and back office functions.
While Future has committed to maintaining GoCompare’s Newport, South Wales site, it is thought that the Soho head office will be shut.
Future is one of the UK’s biggest magazine publishers, with its publications including Total Guitar, Marie Claire and Country Life. The deal will see it pay 136p per share and offer stock in the combined entity, with GoCompare investors set to own around 19 per cent of the group post-deal.
It is thought that GoCompare Chairman Sir Peter Wood will earn around £41 million from the deal, with the terms valuing his 29.7 per cent stake at close to £170 million. Wood will also become one of Future’s top five shareholders, with a 5.5 per cent stake.
The deal was unanimously backed by GoCompare’s board, with 33.6 per cent of shareholders (including Wood) already having approved the deal.
Wood founded Direct Line in 1985 and Esure, the company behind Sheila’s Wheels, in 1999. GoCompare, perhaps best known for its adverts featuring fictional opera singer Gio Compario, was founded in Newport in 2006 before being acquired by Esure in 2015. The company was spun out of Esure in 2016.
Sir Peter Wood said: "In just four years since its demerger from Esure Group, GoCo Group (GoCompare) has created significant shareholder value while successfully transforming from a UK price comparison website into a technology-led business.
"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."
Future Chairman Richard Huntingford added: "The combination is a unique strategic opportunity to create a leading global specialist media and intent platform."
Find businesses for sale here.
If you are looking for an exit, we can help!
Single site Solicitor practice based in the Beds, Bucks and Berks borders with good profits on a turnover of £350,000.
LEASEHOLD
This is a fantastic opportunity to purchase a positively branded financial advisory firm with an innovative and contemporary approach to business whilst retaining traditional standards of excellence in client service.
LEASEHOLD
Provides a range of online and face-to-face training programmes on modules including, but not limited to, financial modelling, business valuation, corporate credit, bank analysis and capital structuring. Caters to 25 active international clients and...
RELOCATABLE
|
20
|
|
May
|
Administrators seek buyer for gourmet instant noodle brand | ADMINISTRATION
Bournemouth-based instant foods brand Mr Lee’s Pure Fo...
|
19
|
|
May
|
Knights continues acquisition-lead growth strategy with £11.5m deal for law firm | BUSINESS SALE
Legal services company Knights has acquired Portsmouth-headq...
|
18
|
|
May
|
Insolvencies forecast to surge 37 per cent in 2022 as inflation hits 40-year high | BUSINESS NEWS
Businesses in the UK look set to come under continuing press...
Sign up to receive our acquisition alert emails to get your FREE guide
|
07
|
|
Jun
|
GoCompare to be offloaded in esure division sale | DIVISION SALE
Insurance giant esure has launched a strategic review into i...
|
10
|
|
Dec
|
Gocompare and Esure brought together in £95m deal | BUSINESS SALE
Price comparison site Gocompare.com is to be bought by Esure...
Business Sale Report is your complete solution to finding great acquisition opportunities.
Join today to receive:
All this and much more, including the latest M&A news and exclusive resources