uSwitch changes owner in €305m deal

Price comparison website uSwitch today followed the advice it has given to thousands of Britons when a $366m (€305m) offer proved too good to turn down.

The business, which was founded six years ago by a cousin of the Queen and other private investors, is switching to new ownership by EW Scripps of the United States.

Consumers logging on to uSwitch.com can compare the price of financial services, telecoms and energy bills with other suppliers and change if they find a more favourable deal.

The deal underlines the revival of interest in dotcom firms as uSwitch was valued at just over £100m (146m) when a strategic review began in January.

It comes hot on the heels of the sale of Friends Reunited, the successful flotation of property website Rightmove and the £275m (€400m) purchase of US price comparison service PriceGrabber.com by Experian – the financial arm of retailer GUS.

Today’s deal brings an £18.9m (€27.3m) windfall for uSwitch staff and management who owned 9% of the firm. Founders of the company include Lord George Milford Haven who is a great nephew of the late Earl Mountbatten.

Uswitch.com does not charge its users for accessing the site but is paid a commission by the supplier if the consumer ultimately changes providers.

The majority of its revenues currently comes from households switching energy providers, but personal finance – including information on credit cards, loans and current accounts – is seen as its biggest growth area.

This year, uSwitch is expected to generate profits as high as $15m (€12.3m) on the back of revenues in a range of $40m (€32m) to $45m (€37m).

Andrew Salmon, chief executive of uSwitch, said: “Comparison shopping for essential home services is already popular with consumers, but there is still ample room for growth.”

In addition to its own website, uSwitch also owns UpMyStreet.com which helps customers choose new places to live and find local shops and services.

These sites will now be harnessed to the Scripps portfolio that includes US and UK-based Shopzilla, an online service that enables shoppers to compare and buy products sold by 65,000 stores.

Scripps said uswitch provided it with a “sturdy platform” for expansion into Europe.