Mid-market buyout firm Next Capital has gone shopping for insurance against cost of living pressures and returned home with online comparison business Compare Club.
Street Talk can reveal Next Capital has paid upwards of $100 million for the insurance and utilities comparison service, and installed founding partner Patrick Elliott and young gun Adam Dicembre on the company’s board.
Next Capital’s investment looks like a play on the rising costs of living in Australia, putting pressure on households.
It is understood the transaction completed at the end of last week, wrapping up months of talks between the two parties. Next Capital was advised by E&P and Corrs Chambers Westgarth, while Stanton Road Partners was in Compare Club’s corner.
The investment looks like a play on the rising costs of living in Australia, putting pressure on households and causing them to think about saving money on major bills.
Compare Club offers quotes on health and life insurance policies, electricity and gas connections and home and car loans, often within minutes.
The group had its eyes on an initial public offering late last year, however switched paths and has ended up in a sale to Next Capital. Street Talk revealed the talks last month.
Next Capital founder Patrick Elliott (pictured) and dealmaker Adam Dicembre led the investment.
The comparison website business told listed equities investors it would make about $20 million EBITDA in the 2022 financial year, as part of its IPO preparations.
It’s expected to find a home in Next Capital’s fund IV, which has last week received regulatory approval to pick up budget car and campervan rental group Jucy, and also owns stakes in equipment rental business Silverchef, contractor Eptech Group and remediation company Enviropacific Services…see full article.
