UK-based insurance firm Markerstudy has reportedly brokered a £400m ($540.14m) deal to acquire BGL Insurance from the owners of the Comparethemarket price comparison platform.
This will be Markerstudy’s biggest acquisition to date, Sky News has reported.
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The firms as expected to make an announcement soon.
Markerstudy, which is said to cater to three million customers, expects to double that number through the new deal.
BGL Insurance distributes policies for partners such as Marks & Spencer and the RAC. It also serves as the retail personal lines platform for brands such as Co-op Group and Lloyds Banking Group’s home insurance products.
BGL Insurance owns brands such as Beagle Street, Budget Insurance and Dial Direct.
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By GlobalDataNotably, Canada Pension Plan Investment Board also owns a stake in BGL Group.
Markerstudy chief executive Kevin Spencer told Sky News: “As a leading distributor in the market, taking ownership of BGLi provides us with a unique opportunity to further accelerate and increase our growth potential. We have enjoyed a long and fruitful partnership with BGL Group, and this has strengthened in recent years with BGLi acting as an outsource partner to a number of Markerstudy brands.”
BGL Insurance chief executive Peter Thompson added that the deal is “a natural evolution for BGLi and brings together our leading digital distribution capabilities with the innovative underwriting capabilities of Markerstudy”.
In January 2021, Markerstudy secured £200m funding from a group of investors led by Pollen Street Capital.
Pollen Street Capital is also expected to partly fund the BGL Insurance deal. The transaction may include additional payments that could take the total value to over £500m.
