Financial services company Fairpoint Group is to acquire Moneyextra.com for £1.

Financial services company Fairpoint Group is to acquire Moneyextra.com for £1.

The initial sum for the deal is £1, with a further £1 million capital to be made available this financial year to replace existing borrowings and fund growth. A further performance related payment is expected to bring the total consideration to £8 million.

Moneyextra is a price comparison website that compares financial services including mortgages and credit cards. Founded in 1995, the Manchester-based company reported an operating loss of £1 million on sales of £3 million for the 19-month period ending September 2009.

Lancashire-based Fairpoint was established in 1997 as Debt Free Direct. The AIM-listed company provides debt resolution and money management advice to financially stressed consumers.

Chris Moat, CEO of Fairpoint, says: ‘The income and expenditure review we undertake with customers gives us a clear insight into where customers can reduce their bills and the addition of Moneyextra to the group provides us with a clear way of delivering savings to customers on a range of product and services.’