DMGT acquires SimplySwitch

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Tuesday 29 August 2006

Associated Newspapers, the national newspaper division of DMGT, announces the acquisition of Simply Energy Limited (‘SimplySwitch’) the company which operates the SimplySwitch.com consumer website and associated call centre. This acquisition will form part of the Associated Northcliffe Digital (‘AND’) network of online assets.

The SimplySwitch.com website enables consumers to compare available products in the energy, home phone, broadband, mobile and credit card markets, and then switch to the most suitable. The call centre allows consumers to switch the full range of products over the phone.

The transaction valued the company at £22.0 million, with cash payable on completion of £16.5 million. Management shareholders have rolled forward a proportion of their consideration into a three year earn out. SimplySwitch will continue to operate independently, but will benefit from potential partnerships within the AND division as well as the wider DMGT group.

SimplySwitch has grown rapidly since its launch late in 2002. In the year to 30 September 2005, the company delivered revenue of £4.1 million (up 120% on the previous year) and earnings before interest and tax (EBIT) of £0.5 million. In the current financial year this impressive growth has continued, with the company on course to deliver revenue of £6.5 million and EBIT of £1.2 million in the year to 30 September 2006.

Speaking after the transaction, Andy Hart, Managing Director of AND, commented: “We are delighted to have completed the acquisition of SimplySwitch, a company we have long admired. The business has grown impressively since inception, led by an excellent management team, offering consumers a truly independent comparison service, and providing a real choice to switch online or over the telephone. The fit with other group assets is strong, and we expect the business to work closely with a number of the group’s other businesses. SimplySwitch is also expanding its range of personal finance products, and will be a key component of AND’s personal finance offering, which already includes the UK’s leading independent personal finance site thisismoney.com”.

Enquiries:
Peter Williams, Finance Director, DMGT
020 7938 6631
Andrew Hart, Managing Director, AN Digital,
020 7752 8675
Andrew Honnor, Tulchan Communications,
020 7353 4200