Member Article

Zoopla acquires price comparison site uSwitch in £160m deal

Two of the UK’s most successful digital businesses have combined, creating a single resource where consumers can research, find and manage their home.

Zoopla Property Group (ZPG), the digital media business which owns and operates some of the UK’s leading online property brands including Zoopla and PrimeLocation, has conditionally agreed to acquire Ulysses Enterprises Limited, owners of price comparison site uSwitch, in a £160m deal.

The deal is reportedly based on a cash-free, debt-free enterprise value, plus a performance-based earn-out of up to £30m. The move is in line with Zoopla’s current growth strategy, as the company this month hired its first ever chief marketing officer as it focuses on expansion of the company and brand as a whole.

Founded in 2000, uSwitch is one of the most widely recognised and trusted brands in the price comparison space.

uSwitch generated revenues of £62.9m and Adjusted EBITDA of £16.2m in the year ended 31 December 2014 with revenue CAGR of 20% (2012-2014). In 2014 the uSwitch website generated 50.3 million visits and saved consumers over £112m off their energy bills alone.

The acquisition of uSwitch is a significant step in ZPG’s mission to be the most useful resource for consumers and the most effective marketing partner for professionals across the property space. The transaction brings together two of the UK’s best-known digital consumer brands and fastest-growing technology businesses of the past few years.

ZPG believes the businesses have highly complementary brands and both are consumer champions empowering consumers to make smarter property decisions.

The combined group will offer advertisers enhanced lead generation, more frequent user engagement and additional revenue opportunities from new products and data.

uSwitch will continue to operate as a standalone brand and platform and the uSwitch management team will remain with the business including CEO Steve Weller. The acquisition is expected to complete by end of June 2015.

Alex Chesterman, Founder & CEO of Zoopla Property Group Plc, said: “This is a transformational acquisition and a meaningful step towards delivering our long-term strategy to be the market-leading resource for consumers and most effective lead generation engine for professionals in the property space.

“We have always been at the forefront of innovation in our industry and this deal brings together two of UK’s best known and fastest growing digital brands as a natural next step towards creating the ultimate platform where consumers can research, find and manage their home.”

“The uSwitch team has developed a trusted brand and leading position in home services price comparison and switching. With the plans we have to develop our combined services, consumers will have a single resource for all their property needs and this enhanced engagement with our users will create a unique advantage for our advertisers.”

“We have also announced a current trading update today which shows strong traffic growth up 11% year-on-year, with mobile engagement up 34% as consumers increasingly rely on the Group’s services at home, work and on the move. We continue to grow our ARPA as our members appreciate the benefits of the scale and differentiation of our audience.”

Steve Weller, CEO of uSwitch, added: “I am immensely proud of everything that we have achieved over the last 15 years and look forward to the next phase of our journey.

“Consumers need our support now more than ever before and, with ZPG’s impressive credentials as an innovative, consumer-empowering business, I am confident that we will be able to help even more people save money on their household bills.”

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