Fairpoint Group acquires Moneyextra.com
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Simon Taylor has sold comparison site Moneyextra.com to the debt solutions provider the Fairpoint Group.
The transaction is structured so that Moneyextra is contributing its platform and Fairpoint its lead base and infrastructure with the eventual purchase price being dependent on success in the form of the profits generated in Moneyextra.
The initial consideration is £1 with up to a further £1m of working capital being made available to Moneyextra in the current financial year to replace existing borrowings, fund integration activity and support revenue growth.
Further earnout consideration is payable to the vendors contingent on a multiple of 49% of the future earnings of the Moneyextra business. On completion the directors expect the ultimate consideration to be approximately £8m.
The directors do not expect the acquisition to alter materially market expectations for financial year 2010 profit before tax adjusted for exceptional items and amortisation. It is expected that there will be exceptional costs and reorganisation expenses of approximately £400,000 in the current financial year associated with the acquisition, including non cash items of approximately £200,000.
Chris Moat, CEO of Fairpoint, says: “The income and expenditure review we undertake with customers gives us a clear insight into where customers can reduce their bills and the addition of Moneyextra to the group provides us with a clear way of delivering savings to customers on a range of product and services.”
Simon Taylor, chairman of Moneyextra, says: “This is an exciting deal for Moneyextra and our team. The natural synergies and shared market knowledge between the two companies will enable us to help more consumers improve their finances and for the group to compete on a profitable footing at a time when the price comparison market is commoditising.”
