Gocompare valued at £190m as Esure buys remaining 50% stake

UK insurer Esure has agreed to buy the remaining 50% stake of price-comparison group Gocompare.com Holdings for £95m.The deal will increase Esure's ownership of Newport-based Gocompare to 100% after its initial investment in 2010.The transaction is "another positive milestone" for Esure, according to chairman Peter Wood."Gocompare has always been an exciting business and it has developed strongly following our original investment into one of the UK's leading financial services brands. This move lays the ground for further development of Gocompare as part of the Group's strategy of diversifying income streams," Wood said.Esure said it would fund the acquisition by issuing up to £125m of dated 10-year tier-two subordinated notes, and management will start a debt-marketing roadshow with investors later this week.Esure is paying 7.3 times 50% operating profits for the stake. The deal values Gocompare at £190m overall.Hayley Parsons, who founded Gocompare in 2006, will leave the business upon completion of the deal.She is one of Gocompare's selling shareholders, along with its employee benefit trust, Blue Board Holdings and certain current and former officers and employees.The deputy chief operating officer of Esure, Jon Morrell, will become the new boss of Gocompare.Esure's chief executive Stuart Vann said: "I have worked with Jon for four years and believe he is the right person to drive the business forward. His experience and knowledge across the market, in combination with the talented team that is already in place in Newport, will be a key asset for the business, as we look to enhance shareholder value over the coming years.'