British insurance company Admiral has sold a stake in US-based price comparison site Compare.com to the wife of Admiral’s founder – at a discounted price.
The deal comes as the website – which allows users to compare prices for car insurance – strains to find a US audience.
Admiral sold its stake in Compare.com to Diane Engelhardt – wife to Admiral founder and former CEO Henry Engelhardt – at a 15% discount, citing “challenging current trading conditions.”
“Compare is facing challenging market conditions in 2018. I remain optimistic over the long-term potential for the price comparison channel in the US and I very much look forward to having Henry as a close partner to continue building on the strong foundations already in place at Compare,” said Admiral chief executive David Stevens.
The Financial Times reported that Diane has agreed to purchase newly issued shares in Compare.com amounting to 17% of the company for $25 million. The transaction reduces Admiral’s stake from 71% to 59%.
An individual close to the matter has revealed that the investment should be viewed as a joint decision between Engelhardt and her husband.
White Mountains and Mapfre – US insurance companies – own the remaining 24% of shares in Compare.
Compare was founded in 2013, with backing from Admiral.
