The owner of Uswitch, one of Britain’s biggest price comparison platforms, and Zoopla, the online property portal, is plotting a break-up that could lead to the sale of some of Britain’s best-known consumer websites in the next 12 months.
Sky News has learnt that Silver Lake Partners, the American private equity firm, has hired two investment banks to launch a review of strategic options for the assets which sit within holding company ZPG.
This weekend, City sources said that JP Morgan and Arma Partners had been engaged by Silver Lake in recent weeks to advise on the project.
Although no firm decisions have been reached about the future of ZPG’s operating businesses, a series of sale processes for its various assets is seen as the likeliest outcome.
The most prominent of the group’s subsidiaries is RVU, a smaller holding company which owns Confused.com, the insurance comparison venture; Uswitch; Money.co.uk; mortgage brokerage Mojo Mortgages; and Tempcover, a temporary car insurance provider.
ZPG also has three other businesses: Zoopla, which sits behind Rightmove in the rankings of Britain’s biggest property portals; Hometrack, a property information site which also has common ownership with PrimeLocation.com; and Alto Software Group, which provides software services to estate agents through a further group of subsidiaries.
Silver Lake took ZPG private from the London Stock Exchange in 2018 in a deal worth about £2.2bn.
Since then, it has acquired a number of other businesses, and reorganised itself into four more independent entities which sit within the ZPG holding company.
A source indicated that there was “no particular path or outcome” for the strategic review to take.
Confused.com was added to the group in 2020 when it was absorbed by RVU following the brand’s acquisition from Admiral, the London-listed insurer.
ZPG has also sold several assets, including RVU’s international arm, in 2023.
Industry sources said there was little or no chance of ZPG being sold in one transaction, with its assets more likely to be offloaded through several processes operating on distinct timetables.
The valuation that ZPG’s subsidiaries might fetch in future sale processes was unclear this weekend, with some potentially worth less than their implied value in the 2018 takeover.
Many of ZPG’s businesses operate in markets which have come under increasing pricing pressure, with growing competition placing a tighter squeeze on margins.
Uswitch
Uswitch, which claims to have saved consumers close to £3bn on their household bills since sits launch in 2000, is expected to attract interest from bidders, according to insiders.
Other mooted transactions in the price comparison sector, such as the sale of a minority stake in Compare The Market, have not materialised.
Moneysupermarket, which is now publicly traded under the name Mony Group, is among the other major players in the industry.
Accounts filed at Companies House for Zephyr Midco 2 Limited for the year ended December 31, 2023 showed group revenues of £451.5m, up from £391m the previous year.
It made an operating loss from continuing operations of £23.3m, against a comparable figure of £630.1m in 2022.
Silver Lake is one of the world’s biggest private equity firms, holding stakes in companies including Manchester City Football Club’s immediate parent, City Football Group, and the RAC breakdown recovery service.
Sky News revealed last month that the RAC’s owners were preparing to pursue a stock market flotation or sale of the company.
The buyout firm is also an investor in the New Zealand All Blacks’ commercial rights entity, following a protracted approval process.
Silver Lake declined to comment.
