Online merger to create first 'super-comparison' website

A private equity firm is hoping to tap the fierce competition between energy and telecoms services by merging a pair of online price comparison sites to cover energy, broadband, TV and mobile providers.

Inflexion Private Equity has struck a deal to buy both Energy Helpline and UK Web Media, which compares mobile phones, to create the UK’s first super-comparison site across the full homes services market.

The value of the deals to create Comparison Technologies has not been disclosed but is likely to dwarf last month’s £40m takeover of rival comparison specialist Decision Technologies by MoneySupermarket.

The Daily Telegraph understands that the pair brought in a combined annual revenue of £30m last year, and Inflexion is likely to have paid multiples of this figure to secure the deals. 

The flurry of activity in the service switching space has emerged as competition in the energy and broadband sectors has heated up.

Simon Turner, managing partner of Inflexion, said the growth in the price comparison market was being driven by increasing consumer choice.

Over 50 new energy suppliers have sprung up in recent years to take on the “Big Six” incumbents and all are beginning to branch out in broadband, insurance and other home services to maintain a competitive edge.

Meanwhile, consumers are increasingly turning to comparison sites to navigate more varied and complex digital TV, broadband and mobile phone deals. 

“We have seen this in the insurance market, and now Comparison Technologies has been created to offer a comparison and seamless switching service across the home services space,” Mr Turner told The Daily Telegraph.