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GoCompare buys energy comparison site Energylinx for £10m
GoCompare.com has acquired energy comparison and switching specialist Energylinx for £10m in cash in a deal that will be financed through existing resources.
The company said the acquisition strengthens its product and partner capabilities in the energy sector, enhancing its ability to help people find and switch to better deals. In addition, it will form an integral part of the strategy to expand GoCompare's share of the energy switching market.
Headquartered in Alloa, Scotland, Energylinx employs a team of more than 20 staff. Following completion of the deal, Ken Geddes, founder and CEO will join the group.
A trusted provider of energy comparison services to some of the UK's best-known consumer organisations, including Which? and Citizens Advice Bureau, Energylinx operates a white-label proposition, with over 200 active affiliates promoting its service to their audiences.
Chief executive officer Matthew Crummack said: "We are pleased to announce this acquisition, which marks yet another significant milestone for the group as we continue to build services that work for both our customers and partners. Energylinx has an excellent reputation in the industry among energy suppliers and those who use its white-label services, and we will leverage our strong brand, tech and product capabilities to expand its reach and impact to help save even more people time and money.
"I am looking forward to welcoming Ken and the rest of the Energylinx team to the group, and to working together to reduce hassle in the energy switching market."
Peel Hunt said this is a "small but strategically important acquisition".
"The importance of the deal is to bring into GoCompare stable the commercial skills underpinning the energy switching market. The deal will have limited impact on this year's forecasts, but is a material strategic step for GoCompare," it said.
At 0920 BST, the shares were up 3.1% to 132.80p.