Last checked at 29 Mar 2018 07:00
THIS ANNOUNCEMENT CONTAINS INSIDE INFORMATION FOR THE PURPOSES OF ARTICLE 7 OF EU REGULATION 596/2014.
Moneysupermarket.com Group PLC acquisition of home communications comparison business Decision Technologies Limited
Moneysupermarket has agreed to acquire Decision Technologies Limited ("Decision Tech"), a leading home communications and mobile phone comparison business, for £40m.
Decision Tech provides home communications comparison both as a B2B service and via its own consumer comparison brands such as broadbandchoices.co.uk. As a white-label provider, Decision Tech sits behind several of the UK's leading comparison tools for home communications, including Moneysavingexpert.com.
The acquisition supports Moneysupermarket's strategy outlined in February to generate new market growth by taking price comparison to the user. Decision Tech has one of the most advanced and scalable B2B comparison offerings in the UK. This is ideally suited to offering Moneysupermarket's wider comparison services to new audiences via B2B partnerships.
Strategic highlights
§ Strong fit with the strategy of reaccelerating core growth and driving new market growth
§ Decision Tech is a leading B2B UK home communications and mobile comparison specialist.
§ Profitable, earnings accretive acquisition (Forecast £3.6M Adjusted EBITDA for the year to 31 March 2018)
§ Significantly improves the Group's B2B capability to respond to new and growing demand and will integrate with the newly completed technology infrastructure, including across the existing Money, Energy, and Insurance channels.
§ Boosts the Group's home communications offering and strengthens Moneysupermarket's lead as the most diversified comparison group.
Decision Tech is headquartered in London and employs a team of over 40 staff. Following completion, Michael Phillips, Founder and CEO, and the Decision Tech management team will join the Group and continue to lead Decision Tech from their current offices in Holborn.
Mark Lewis, Moneysupermarket Chief Executive Officer, said:
"We are delighted to announce this transaction and I look forward to welcoming Michael and his team to the Moneysupermarket Group. We said we would be working to take price comparison to users via sites they regularly visit on their mobiles, and Decision Tech's B2B operation does just that.
"Decision Tech is one of the UK's leading platforms for helping consumers compare and choose home communications, broadband and mobile phone deals. This is an area people find complex and confusing, and where there are plenty of savings to be made by customers".
Michael Phillips, Founder & CEO of Decision Tech added:
"I am delighted that Decision Technologies is joining the Moneysupermarket Group. This is a testament to our team's dedication to technical innovation in creating cutting edge comparison solutions for our partners, and a first-class user experience for consumers looking to save money through our portfolio of brands. We are looking forward to being part of a group that shares our values and will open new opportunities for us to launch new products to our B2B partners and build the profile of our trusted consumer brands".
For further information, contact:
Matthew Price, Chief Financial Officer Matthew.Price@moneysupermarket.com 0207 379 5151
Jo Britten, Investor Relations Director Jo.Britten@moneysupermarket.com 0789 646 9380
William Clutterbuck, Maitland 0207 379 5151
Note
The acquisition price is agreed at £40M on a cash-free, debt-free basis. The transaction is subject to the completion of customary conditions. The acquisition will be debt funded using the Group's existing facility.
Notes to Editors
Information on Decision Tech
Decision Tech comprises home communication and mobile comparison brands such as broadbandchoices.com, comparemymobile.com and mobilephonechecker.co.uk. These operate on its proprietary sales platform offering thousands of broadband, TV, mobile, home phone deal and mobile recycling combinations from all top UK providers. The platform is also available as a white label service to third parties.
Cautionary note regarding forward looking statements
This announcement includes statements that are forward looking in nature. Forward looking statements involve known and unknown risks, assumptions, uncertainties and other factors which may cause the actual results, performance or achievements of the Company to be materially different from any future results, performance or achievements expressed or implied by such forward looking statements. Except as required by the Listing Rules, Disclosure and Transparency Rules and applicable law, the company undertakes no obligation to update, revise or change any forward-looking statements to reflect events or developments occurring on or after the date such statements are published.