Compare the Market investor plots sale of stake in £4.5bn price comparison site | Business News
An investor in one of Britain’s most popular price comparison sites is exploring the sale of its stake in a deal that could value it at more than £4bn.
Sky News has learnt that the Canada Pension Plan Investment Board (CPPIB) is lining up advisers to assess whether to sell its 30% holding in Compare the Market (CtM).
The site – best-known for its advertising campaigns featuring Aleksandr Orlov, an animated meerkat – has provided quotes to 32m visitors in the last three years, making it one of the UK’s most-visited consumer technology platforms.
CtM allows customers to compare the cost of travel, motor, home insurance and other products across scores of different providers.
Founded in 2006, it has become hugely profitable by driving revenue from introductions it has made through its website.
The company operates in a fiercely competitive market which includes rivals such as Go Compare and MoneySupermarket.
Based in Peterborough, it employs about 750 people.
Sources said this weekend that CPPIB, which ranks among Canada’s largest public sector pension funds, was not certain to offload the stake it acquired in 2017.
That deal saw CPPIB paying £675m for a 30% stake in CtM.
Insiders said the site made about £300m in profit last year, and that CPPIB was likely to value its stake at up to 15 times its earnings.
That would mean the business as a whole could be valued at £4.5bn or more, with the Canadian interest worth in the region of £1.25bn.
CtM’s profitability has surged as sectors such as car and travel insurance have shifted online, with more than 90% of motor insurance policies now sold through digital channels, according to data.
Financial services giants, sovereign wealth funds and private equity funds could all be candidates to buy the CPPIB stake.
CPPIB is a major investor in the UK, owning shares in companies such as Octopus Energy.
One source close to the situation said it was not a forced seller and would only sanction a deal which reflected CtM’s growth prospects.
CtM is majority-owned by BHL, a vehicle controlled by the South Africa-based Steyn family.
People close to the situation said that BHL’s 70% stake in the company was not for sale.
CtM’s parent, BGL Group, is run by Mark Bailie, a former Royal Bank of Scotland executive who joined the company in 2020.
In 2022, BGL Insurance, an insurance distributor, was sold to Markerstudy, a privately owned group which has played a key role in consolidating the sector in recent years.
CtM, CPPIB and Goldman Sachs all declined to comment.