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BGL Group, the name behind brands including comparethemarket.com, Dial Direct, Budget Insurance and Beaglestreet.com, has received a huge investment from the Canada Pension Plan Investment Board (CPPIB).
Announced today, CPPIB will take a 30% stake in BGL, subject to regulatory approval, for the eye-catching sum of £675 million (approximately C$1.13 billion). The deal will see BHL, the current owner of BGL, retain a majority shareholding in the business, and is expected to be completed in April next year.
BGL is seen as one of the leading digital distributors in the UK focusing on both insurance and household financial services – for the year ending June 30, 2017, it reported 14% revenue growth at £585 million while its total customers reached more than 8.5 million.
“We are delighted to welcome CPPIB as an investor,” commented Peter Winslow, chairman of BGL Group. “During the course of our IPO preparations, our shareholder BHL received a number of approaches from different kinds of investors, as BGL represents a unique growth opportunity in UK financial services. A competitive process followed and our view was that CPPIB was the best partner for BGL. It is a hugely respected and experienced global institution, with a long-term ethos and track record of supporting growth.”
Meanwhile, Ryan Selwood, managing director and head of direct private equity at CPPIB, outlined that the investor will look to continue to grow its financial technology business through the deal.
“We are very pleased to create this partnership with BHL in a dynamic, high-growth sector to support the success of BGL’s iconic brands, including comparethemarket.com, which will further diversify our portfolio,” he said. “This investment alongside a world class, aligned partner in BHL is a great example of our private equity solutions strategy, where we provide capital solutions at scale to families, like-minded investors, corporations, funds and entrepreneurs, to pursue sizeable investments with an option to hold long term, ultimately delivering strong risk-adjusted returns to CPP contributors and beneficiaries.”
