Peterborough insurance giant looks to the future after major investment
The boss of leading Peterborough employer BGL Group says it is business as usual after the company secured a Â£675 million injection from an international investment company.
The insurance giant, based in Bakewell Road, Orton Southgate, has announced the Canada Pension Plan Investment Board (CPPIB) has agreed the investment in return for a 30 per cent stake in the company.
As a result, the BGL Group, which employs 1,800 people in Peterborough, has shelved its plans to float on the London Stock Exchange.
The new deal values BGL, which owns brands including comparethemarket.com, LesFurets.com and online life insurer BeagleStreet.com at £2.2billion.
BGL chief executive Matthew Donaldson said: “The investment was a decision based on confidence in BGL.
“We are all delighted but it is very much business as usual with the emphasis on new ventures.
“BGL is continuing to grow and recruit in Peterborough but we will do so in line with our business plan.”
BGL, which last year saw revenues rise by 14 per cent to £585 million with a 19 per cent hike in profit before tax to £126 million, has spent much of the year preparing for a possible flotation on the London Stock Exchange.
Mr Donaldson said: “BGL is now very well funded for the future. The agreement gives us what we wanted to achieve without having to go through the administrative process involved in a Stock Exchange listing. We do not have any intention of revisiting the flotation plan.”
The investment should be completed by April 2018.