29th Aug 2006 09:18
29 August, 2006 Daily Mail and General Trust plc (`DMGT') DMGT acquires SimplySwitch Associated Newspapers, the national newspaper division of DMGT, announces theacquisition of Simply Energy Limited (`SimplySwitch') the company whichoperates the SimplySwitch.com consumer website and associated call centre. Thisacquisition will form part of the Associated Northcliffe Digital (`AND')network of online assets.The SimplySwitch.com website enables consumers to compare available products inthe energy, home phone, broadband, mobile and credit card markets, and thenswitch to the most suitable. The call centre allows consumers to switch thefull range of products over the phone.The transaction valued the company at ‚£22.0 million, with cash payable oncompletion of ‚£16.5 million. Management shareholders have rolled forward aproportion of their consideration into a three year earn out. SimplySwitch willcontinue to operate independently, but will benefit from potential partnershipswithin the AND division as well as the wider DMGT group.SimplySwitch has grown rapidly since its launch late in 2002. In the year to 30September 2005, the company delivered revenue of ‚£4.1 million (up 120% on theprevious year) and earnings before interest and tax (EBIT) of ‚£0.5 million. Inthe current financial year this impressive growth has continued, with thecompany on course to deliver revenue of ‚£6.5 million and EBIT of ‚£1.2 millionin the year to 30 September 2006.Speaking after the transaction, Andy Hart, Managing Director of AND, commented:"We are delighted to have completed the acquisition of SimplySwitch, a companywe have long admired. The business has grown impressively since inception, ledby an excellent management team, offering consumers a truly independentcomparison service, and providing a real choice to switch online or over thetelephone. The fit with other group assets is strong, and we expect thebusiness to work closely with a number of the group's other businesses.SimplySwitch is also expanding its range of personal finance products, and willbe a key component of AND's personal finance offering, which already includesthe UK's leading independent personal finance site thisismoney.co.uk".Enquiries:Peter Williams, Finance Director, DMGT 020 7938 6631Andrew Hart, Managing Director, AN Digital, 020 7752 8675Andrew Honnor, Tulchan Communications, 020 7353 4200 Daily Mail and General Trust plc Northcliffe House, 2 Derry Street, London, W8 5TT Tel 020 7938 6000 Fax 020 7938 4626 www.dmgt.co.uk Registered in England and Wales No. 184594ENDDAILY MAIL & GENERAL TRUST PLCRelated Shares:
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