Brightside buys Quote Exchange for £3.7m

AIM-listed Brightside Group announced this morning that it has agreed to purchase the entire issued share capital of Quote Exchange for £3.7m in cash and the issue of 1,394,700 ordinary shares in Brightside.

Quote Exchange designs and builds specialist distribution technology to provide verified price comparison solutions.

This technology, which is currently provided to 16 different customers, generates approximately 5.9 million price comparison quotes per month.

In the year ended 28 February 2010 Quote Exchange generated a turnover of £1.2m and a gross profit of £0.8m.

Brightside said the current distribution model for insurance products relies heavily on the application of price comparison solutions.

"The acquisition of Quote Exchange secures access to this specialist distribution technology, whilst also providing an important tool for the group, and its strategic partners to maximise income from its potential customers," it said in a statement.

Paul Chase Gardener, Brightside's chief executive and finance director, said: "The acquisition of Quote Exchange represents a significant step forward for the Brightside Group in delivering enhanced distribution capabilities, and widening the Group's sales footprint."