29th Dec 2020 08:49
(Alliance News) - Admiral Group PLC on Tuesday said it has come to an agreement with ZPG Comparison Services Holdings UK Ltd to offload its Penguin Portals and Preminen price comparison sites for a total value of GBP508 million.
Shares in the blue chip insurer was 3.2% higher in London on Tuesday morning at 3,016.00 pence each.
Penguin Portals is made up of online comparison portals Confused.com, Rastreator.com and LeLynx.fr, technology operations Admiral Technologies and its 50% share of Preminen Price Comparison Holdings.
Admiral's US comparison business, compare.com, is not included in the transaction, the insurer noted, and it also said the deal will "slightly reduce" its future earnings.
Admiral will sell its Penguin Portals and Preminen comparison businesses for a total value of GBP508 million, which also includes MAPFRE selling its 25% holding in Rastreator and 50% holding in Preminen as part of the transaction.
Chief Executive David Stevens said: "The purchase of the UK and European comparison businesses by RVU offers a positive outcome for our customers and our employees, and also provides good value for our shareholders.
"The combination of Penguin's strengths, notably in insurance comparison across much of Europe, with RVU's strengths beyond insurance and experience in growth through acquisition, provides a solid foundation for the combined businesses to grow and prosper."
Admiral expects net proceeds of around GBP450 million, with a majority of this to be returned to shareholders but will hold back a portion to support new investments.
Admiral expects the deal to close in the first half of 2021.
"Admiral will continue to focus on what Admiral has consistently done well, namely designing and underwriting good value mass market financial service products. Comparison will continue to be Admiral's most important distribution channel in Europe and we look forward to continuing to work closely with Confused.com, Rastreator and LeLynx as they continue to grow and strengthen the customer offering," Stevens continued.
He added: "It is a wrench to part company with our fellow employees at Confused.com, Rastreator, LeLynx, Admiral Technologies and Preminen, but I believe it is the right choice for the long-term success of the businesses and will create many interesting and worthwhile opportunities for our teams going forward. I thank them and their predecessors for their contribution to the success of the group and to the financial well-being of their millions of customers."
ZPG, which means Zoopla Property Group, will control the acquired businesses through its comparison site division, RVU - which operates Confused.com rival Uswitch.
RVU CEO Tariq Syed said: "Penguin Portals offers an exciting opportunity for us to expand our consumer brand portfolio and geographic reach. With its focus on insurance, Confused.com perfectly complements Uswitch's existing expertise in the home services category, and, with equally established offerings in other countries, we have an opportunity to help even more consumers find the right deals for their needs."
By Paul McGowan; [email protected]
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