MoneySavingExpert.com — Acquisition by MoneySupermarket.com Group PLC
MoneySavingExpert.com, the personal finance website founded by Martin Lewis, was acquired by MoneySupermarket.com Group PLC in 2012 for £60m initial consideration, representing approximately 4.7× EBITDA based on the year ended 31 October 2011.
Acquirer
MoneySupermarket.com Group PLC
Year
2012
Enterprise Value
£60.0m (initial)
Revenue
£15.77m
Adjusted EBITDA
£12.64m
EBITDA Multiple
~4.7×
Industry
Affiliate Marketing Business
Transaction
In 2012, MoneySupermarket.com acquired MoneySavingExpert.com, the personal finance website founded by Martin Lewis. MoneySavingExpert operated a content-led model providing free financial information to consumers while generating revenue through affiliate and referral links. For the year ended 31 October 2011, MoneySavingExpert reported £15.77m of revenue and £12.64m of EBITDA. The acquisition included £60m of initial consideration, comprising cash and MoneySupermarket shares, with up to a further £27m conditional on performance targets. Based on the initial consideration, the transaction implies approximately 4.7× EBITDA.
Why the Premium?
- Scaled content-led affiliate business with a large audience
- Strong brand recognition (Martin Lewis)
- Highly profitable referral model (~80% EBITDA margin)
- Diversified affiliate and referral revenue streams
- Strategic fit with MoneySupermarket's comparison platform
SME Takeaway
MoneySavingExpert demonstrates the potential value of a scaled content-led affiliate business. However, the company was considerably larger and more profitable than a typical SME affiliate website, with an EBITDA margin of approximately 80%. Its valuation should be viewed as a transaction reference rather than a direct benchmark for smaller affiliate businesses.
Sources
Disclaimer: Case study figures are based on publicly available information and are provided for illustrative purposes only. Transaction values, EBITDA figures and implied multiples may reflect different reporting periods, definitions and deal structures, and some multiples are calculated from disclosed figures rather than reported by the parties. They are not formal valuations, investment advice or a substitute for independent professional advice.