Media platform Future has announced that Go-compare owner GoCo had accepted its takeover offer.
The Combination values the entire issued and to be issued share capital of GoCo Group at £594 million on a fully diluted basis.
It is expected to become effective in the first quarter of next year, subject to conditions.
Future said the deal is designed to strengthen its goal to address growing consumer demand for “informed and value driven purchasing decisions enabled by intent driven content”.
Future Directors said the Combination provides an opportunity to capitalise on the combination of Future’s deep audience insight with GoCo Group’s expertise in price comparison and the proprietary technology of both the Future Group and the GoCo Group of companies.
Founded in 2006, GoCo Group’s most popular subsidiary is Gocompare.com, and also includes Look After My Bills Ltd, MyVoucherCodes, Energylinx, and Gocompare.com Finance Ltd. It has offices in Newport, London, and Alloa, Scotland.
Bath-headquartered Future was founded in 1985, and now has over 200 special interest titles across sport, tech, media, and lifestyle titles producing content for magazines, websites and events.
Commenting on the Combination, Richard Huntingford, Chairman of Future said the deal “represents a compelling mixture of complementarity and growth opportunity.
“We believe that the Combination is a unique strategic opportunity to create a leading global specialist media and intent platform, capitalising on the growing consumer demand for informed and value driven purchasing decisions enabled by intent driven content, which will deliver strong returns for all shareholders.”
Sir Peter Wood CBE, Chairman of GoCo Group added: “I am delighted to be announcing the combination of GoCo Group and Future today. In just four years since its demerger from esure Group, GoCo Group has created significant shareholder value while successfully transforming from a UK price comparison website into a technology-led business with leading brands focused on helping consumers save time and money sustainably.
“Future’s market leading global platform for specialist media and content offers GoCo Group a unique opportunity to materially accelerate its growth plans, reduce customer acquisition costs and increase its addressable market. I believe the offer, comprised of a significant equity component, provides a compelling opportunity for shareholders to benefit in substantial future value creation.”