Comparison website iSelect has now spent $33.5 million on the Infochoice, BidMyLoan and Once Life businesses, looking to expand its position as the leading aggregator of financial and household services quotes in the country.
The development comes just two months after iSelect sold a 10.2% stake to Spectrum Equity Investors for $30.2 million.
Both investments are further evidence the online comparison industry – along with the Australian tech industry in general – is now definitely heating up.
iSelect announced this morning the acquisition of Once, which is the major shareholder in financial comparison site Infochoice. The company was founded 15 years ago, and in March recorded a 37% increase in revenue for the 2010-11 financial year, along with a full-year profit of $216,462.
“The comparison markets have really come of age now, and are starting to ramp up as consumers embrace online,” chief executive Damian Waller says.
“We’ve had a good track record with our health insurance businesses over the past 10 years or so, and we’ve continued to grow. We want to replicate the same level of success in the financial area, which is what InfoChoice is doing.”
BidMyLoan, another finance comparison site, and life insurance site Once Life will come as part of the deal as well.
iSelect began earlier in the decade as a type of private health insurance broker, but since then the company has now moved into other areas such as car and travel insurance.
While the company is now an unlisted public entity, and Waller said earlier this year he would expand iSelect into gas, electricity and broadband comparisons before floating on the ASX – that is still on the table as he ramps up iSelect to be the “one-stop shop” of household and financial services.
“All of those options are still on the table. The main focus at the moment is for growing the business, expanding as quickly as we can. We’re not keen on an exit in the immediate future. It’s on the table, but just not right now.”
Infochoice competes directly with RateCity and Mozo.
The development also comes after some strong activity in the comparison sites sector. Late last year HelpMeChoose.com.au was sold to Mortgage Choice, while News Corp purchased GetPrice in September.
Ninemsn is a major shareholder in iSelect, spending $20 million for just over a third of the business in 2006.
Patrick Stafford is a freelance journalist and a former deputy editor of SmartCompany.
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