Markerstudy, the founder of Elite Leisure Collection (ELC), owner of Times publisher, One Media, has agreed to buy BGL Insurance [BGLi].
It comes just two years after Markerstudy became the UK’s sixth-largest motor insurer with the acquisition of Co-op Insurance’s underwriting business in a deal worth £185million.
The BGLi deal, which is expected to be funded in part by a capital injection from Pollen Street Capital, its private equity backer, could also include potential further payments that could take the eventual price to more than £500million.
The transaction is subject to regulatory approval and is expected to complete during the first half of 2022.
Kevin Spencer, group chief executive of Markerstudy, said: “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.”
Peter Thompson, chief executive of BGL Insurance, added that the deal was ‘a natural evolution for BGLi and brings together our leading digital distribution capabilities with the innovative underwriting capabilities of Markerstudy’.
BGL’s insurance arm distributes policies for partners including M&S and the RAC, and also acts as the retail platform for other major brands such as the Co-op Group and Lloyds Banking Group’s home insurance products.
The business also includes wholly owned brands including Beagle Street, Budget Insurance and Dial Direct.
BGL launched Comparethemarket in 2006, which became one of Britain’s biggest comparison websites, although the group previously separated its price comparison business from its insurance arm, meaning the popular website is not part of the deal.
