GoCompare agrees £36.5m deal to buy MyVoucherCodes
MyVoucherCodes is one of the UK’s largest online voucher code sites with eight million e-mail subscribers.
Price comparison group GoCompare is snapping up discount codes site MyVoucherCodes in a deal worth £36.5 million.
MyVoucherCodes is one of the UK’s largest online voucher code sites with eight million e-mail subscribers and around 45 million visits a year to its website.
It works with more than 3,000 brands – including ASOS, Sky and Expedia – notching up £350 million of retailer revenue for the year to June 30.
GoCompare, which was spun out from esure and listed on the London Stock Exchange in November last year, said the acquisition will allow it to offer deals and incentives to savers who use both comparison and voucher websites.
In a trading update alongside the deal announcement, GoCompare added that underlying earnings for 2017 are now set to be at the upper end of expectations, with revenues some 5% higher this year, at around £149 million.
Matthew Crummack, chief executive of GoCompare, said: “We are making strong progress towards our ambition to become the ‘go-to’ place for savvy savers to find great deals, and for service providers to reach and acquire customers.”
The deal comes after Newport-based GoCompare last month fought off a second unwanted takeover move from suitor ZPG, the company behind sites including uSwitch and Zoopla.
It rejected an unsolicited approach of 110p-a-share from ZPG for undervaluing the company, which followed an initial offer in May.
ZPG scrapped its pursuit of GoCompare in late November, saying it would not be making an offer.
GoCompare’s move to buy MyVoucherCodes marks the latest in a line of investments, following its acquisition of a stake in Dubai-based counterpart Souqalmal.com for two million US dollars (£1.7 million) in October and a minority holding in digital “robo-adviser” Mortgage Gym in July.
MyVoucherCodes is expected to make pre-tax profits of £4 million for 2017 on revenues of £11.8 million.
The majority of its revenues are UK based, but MyVoucherCodes also has websites in international markets including Australia, Ireland, Germany and France.
Existing management at MyVoucherCodes are set to remain at the helm after the acquisition.