Moneysupermarket snaps up Midlands rival
PRICE comparison website Moneysupermarket.com expanded its online presence last month with the £4.6m acquisition of Coventry-based Financial Services Net.
The company operates a portfolio of consumer finance and insurance domain names.
In an interim management statement Moneysupermarket said the initial consideration would rise to a total of £9m over the next three years. It is understood to be the first acquisition it has made.
It bought the business from the Panesar family and other investors. The deal was funded from reserves which stand at £26.7m.
Meanwhile, the group, based in Ewloe, near Chester, said it had recorded a sharp rise in revenues since July.
Sales rose 11% between July 1 and November 15 while earnings before interest, tax, depreciation and amortisation were up 16%.
It put the better performance down to new channel launches covering credit cards, motor and home insurance, and savings.
However the number of people looking at its money and travel pages fell, with overall numbers propped up by insurance and home services.
Across the group’s four divisions money revenues were up 19%; insurance sales jumped 13%; travel continued to struggle with a 6% sales decline; and home services revenues fell by 9%.
Chief executive Peter Plumb said: “Moneysupermarket.com has continued to make good progress in the second half of the year. Revenues in the third quarter were up more than 10%, with the insurance and money verticals benefiting from the site developments made earlier in the year. Our travel business is on track for a relaunch in Q1 2011.
The recent acquisition of FSN will enable us to further expand our brand offering to new customer segments in the money and insurance business.”
Lawyers at the Manchester office of Addleshaw Goddard advised Moneysupermarket on the acquisition.
