Esure share price drops as insurance firm ups stake in GoCompare to 100pc

Insurance firm Esure Group has bought the remaining 50 per cent of GoCompare.com, having purchased the other half of the price comparison website in 2007, one year after its launch.

 

Esure paid £95m to bring its holding up to 100 per cent and Jon Morrell, currently the firm’s deputy chief operating officer, is to take on the role of chief executive of GoCompare, which is to be run “on a business as usual basis”. 

 

Meanwhile, Hayley Parsons, who founded GoCompare, will leave the business upon completion of the deal.  

 

GoCompare will continue to operate separately and under its own branding,  which includes the annoying opera singer, Gio Compario.

 

Stuart Vann, chief executive of Esure, said the acquisition was a great opportunity for the firm to own “an important and innovative player in the price comparison market at an attractive price”. 

 

He commented: “While the Esure Group and GoCompare will continue to operate on a strictly independent basis, regarding partnerships and comparison services, I believe that there are significant opportunities available for Go Compare to grow revenues and profitability over the medium to long term.”

 

Vann added that  the time was right  to acquire the remaining 50 per cent of the company and “take the business to the next level”.   

 

Esure’s share price dropped by over 3.6 per cent yesterday.