Business Growth Fund (BGF), the £2.5bn state-backed vehicle aimed at financing UK SMEs, has bought a £10m minority stake in London-based Broadbandchoices.co.uk, a provider of home communications price comparison services.
Broadbandchoices.co.uk, owned by Decision Technologies Ltd (DTL), was founded in 2005 and is accredited by industry regulator Ofcom with around 1.8 million monthly visitors.
DTL, which also has a European footprint through its newly launched comparison websites Comparaiso.es in Spain, Letamis.fr in France, and Schlaubi.de in Germany, generated turnover of nearly £11m in 2012.
In addition to providing comparison and switching services directly to consumers through Broadbandchoices.co.uk, DTL also operates a partnership platform through which it powers the home communication comparison services of over 40 partners including CompareTheMarket.com, Confused.com and GoCompare.com.
The funding will be used to accelerate Broadbandchoices.co.uk’s ambitions in becoming the UK’s leading destination site for customers looking to save money on broadband, digital TV and home phone services, as well as to promote international expansion with its European brands.
It will also be used to develop the company’s proprietary technology, providing tools and apps to make it easier for customers to find the right deal for them and switch.
Visitors to the Broadbandchoices.co.uk website can save themselves over £400 from their annual broadband, home phone and digital TV bill, BGF said.
The management team, led by managing director Michael Phillips and chief operating officer Jon Ingram, pictured, has extensive experience in the online price comparison space.
Chris Hodges will join the board on behalf of BGF.
RSM Tenon conducted financial due diligence and Intuitus provided IT due diligence.
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