GoCo Group Plc – the name behind price comparison brand GoCompare – will soon become part of specialist media platform Future Plc.
The latter is acquiring GoCo Group’s entire issued and to be issued share capital, which the deal values at £594 million. GoCo Group shareholders will own approximately 19% of the combined business upon completion of the transaction.
“Under the terms of the combination, GoCo Group shareholders will be entitled to receive 0.052497 new future shares and 33 pence in cash valuing each GoCo Group share at 136 pence,” noted GoCompare’s parent, which also owns MyVoucherCodes, weflip, and Look After My Bills.
The agreement represents a premium of approximately 23.6% from the closing price of 110 pence per share on the day prior to the sale announcement.
Expected to become effective in the first quarter of 2021, the union will see GoCo Group non-executive director Angela Seymour-Jackson join the Future board in the same capacity.
“In just four years since its demerger 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 focussed on helping consumers save time and money sustainably,” asserted a “delighted” Sir Peter Wood CBE, who chairs GoCo Group.
He added: “I believe the offer, comprised of a significant equity component, provides a compelling opportunity for shareholders to benefit in substantial future value creation.”
In Wood’s view, the swoop will not only materially accelerate GoCo Group’s growth plans but also reduce customer acquisition costs and increase its addressable market.
Meanwhile Future chief executive Zillah Byng-Thorne had this to say: “Through the acquisition, we expect to create a leading offering for consumers, providing complementary insights that enable consumers to make informed choices in their passions, interests, and key purchasing decisions.
“The transaction will bring together our depth of audience insight and reach with GoCo’s expertise in price comparison, underpinned by the proprietary technology of both groups.”
