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GoCompare motors higher as it snaps up MyVoucherCodes in £36.5mln cash deal

The price comparison site said the addition of MyVoucherCodes would further its mission of helping people save time and money

GoCompare.com Group PLC (LON:GOCO) struck a chord with investors on Tuesday as the price comparison website unveiled the acquisition of MyVoucherCodes for £36.5mln in cash.

MyVoucherCodes.co.uk is one of the UK’s largest online vouchers and coupons sites with 8mln email subscribers and a website which receives around 45mln visits each year.

It works with more than 3,000 retail brands and generated £350mln of revenue for those companies in the year to the end of June.

GoCompare, which demerged from Esure Group PLC (LON:ESUR) in November 2016, said the addition would further its mission of helping people save time and money.

“We are making strong progress towards our ambition to become the 'go-to' place for savvy savers to find great deals, and for service providers to reach and acquire customers,” said chief executive Matthew Crummack.

“I am looking forward to MyVoucherCodes playing a valuable role within the group and providing us with the potential to help even more people, more often.”

GoCompare expects the deal to be earnings accretive in 2018 on an underlying basis, while it also expects the current MyVoucherCodes management team to remain in place.

In a brief trading update at the bottom of this morning’s statement, the company said it expected full-year adjusted operating profit to be at the “upper end of current market expectations”.

GoCompare shares jumped 4.3% to 103.5p early Tuesday.

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