Technology

Posted on November 15, 2017 by staff

GoCompare rejects ‘opportunistic’ takeover offer

Technology

Price comparison website group GoCompare has turned down a £460m takeover bid from ZPG, the owner of Zoopla and uSwitch.

ZPG made an unsolicited offer on 8 November to buy GoCompare for 110 pence per share, a bid which was “unanimously and unequivocally rejected”.

In a statement on the London Stock Exchange, the board of GoCompare said the offer fundamentally undervalues the business and does not reflect the strong growth prospects of the company.

The proposal followed an initial approach by APG on 26 May 2017, which also valued the business at 110p per share.

GoCompare was previously part of insurance group Esure until its demerge one year ago.

“The board and I are extremely pleased with the transformation of the business that the management team has delivered since the demerger,” said chairman Sir Peter Wood.

“The continuing evolution into an entrepreneurial, innovation-focused technology company which we expect will create significant value for shareholders over the medium term by saving people everywhere time and money.

“ZPG’s proposal is highly opportunistic and fundamentally undervalues the company and its prospects.”

In a London Stock Exchange announcement confirming its proposal, ZPG’s board said it was currently considering its position.

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