Founded in 2000, uSwitch is the UK’s number one price comparison website in the home services sector and is one of the most widely recognised and trusted brands in the price comparison space.
In August 2013, LDC backed the management buy-out of leading price comparison service uSwitch.com.
In June 2015, LDC exited uSwitch in a £160million sale to London Stock Exchange-listed business Zoopla Property Group.
Since the original investment LDC has worked with the management team to support the expansion of uSwitch’s platform, which has driven significant growth and market share gain. uSwitch has continued to expand its services in the energy division as well as non-energy products and services, including mobile, broadband and financial services.
Revenue in its 2014 financial year reached £62.9million whilst underlying profit (EBITDA) increased 30 per cent to £16.2million.
According to ZPG, the acquisition is a significant step in its mission to be the most useful resource for consumers and the most effective marketing partner for professionals across the property space, bringing together highly complementary brands focused on championing and empowering consumers to make smarter property decisions. The combined business 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 its management team will remain with the business, including CEO Steve Weller.
The sale will deliver a day one money multiple of 2.4x and an IRR of 69 per cent.
The support of Chris Hurley and the team at LDC has been critical in helping us scale the business over the last two years, strengthening our position in a highly competitive and fast-moving sector. As part of Zoopla Property Group, we now have the ideal opportunity to continue that journey as part of a broader group, offering customers of both brands a deeper, richer experience.Steve Weller, CEO, uSwitch