An investor in one of Britain’s most popular price comparison sites is exploring the possibility of selling its stake in a deal that could value it at more than £4 billion.
Sky News has learned that the Canada Pension Plan Investment Board (CPPIB) is selecting advisers to consider whether to sell its 30% stake in Compare the Market (CtM).
The site – best known for its advertising campaigns featuring Alexander Orlov, an animated meerkat – has provided quotes to 32 million visitors over the past three years, making it one of the UK’s most visited consumer tech platforms.
CtM allows customers to compare the cost of travel, car insurance, home insurance and other products between dozens of different providers.
Founded in 2006, it became extremely profitable by increasing revenue from the introductions it made through its website.
The company operates in a highly competitive market that includes rivals such as Go Compare and MoneySupermarket.
Based in Peterborough, it employs around 750 people.
Sources said this weekend that CPPIB, which ranks among Canada’s largest public-sector pension funds, is uncertain about offloading the stake it acquired in 2017.
That deal saw CPPIB pay £675m for a 30% stake in CtM.
Insiders said the site made around £300m in profit last year and that CPPIB was likely to value its stake at up to 15 times its earnings.
That would mean the business as a whole could be valued at £4.5bn or more, with the Canadian interest worth around £1.25bn.
CtM’s profitability has grown as sectors such as motor and passenger insurance have moved online, with more than 90% of motor insurance policies now sold through digital channels, according to the data.
Financial services giants, sovereign wealth funds and private equity funds could be candidates to buy CPPIB shares.
CPPIB is a major investor in the UK, holding stakes in companies such as Octopus Energy.
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One source close to the situation said it was not a forced seller and would only sanction a deal that reflected CtM’s growth prospects.
CtM is majority-owned by BHL, a vehicle controlled by the South African-based Steyn family.
People close to the situation said that BHL’s 70% stake in the company is not for sale.
CtM’s parent company, BGL Group, is run by Mark Bailey, a former Royal Bank of Scotland executive who joined the company in 2020.
In 2022, BGL Insurance, an insurance distributor, was sold to Markerstudy, a private group that has played a key role in consolidating the sector in recent years.
CtM, CPPIB and Goldman Sachs declined to comment.
