Gocompare said in a statement ZPG's all-share offer "fundamentally undervalued" the company's prospects and its business, which enables consumers to shop around for financial, travel and utility services.
GoCompare, which only debuted on the London stock market a year ago following its demerger from insurer Esure (ESUR.L), said on Tuesday that it had "unanimously and unequivocally" rejected the unsolicited 110 pence-per-share cash and stock proposal from bigger rival ZPG because it "does not reflect the strong growth prospects of the company". ZPG said it is now "considering its position". The offer represented a 16 per cent premium on the closing price of the insurance comparison site the day before the proposal. The company also confirmed that it was trading in line with the board's prior expectations.
ZPG operates some of the UK's most well-known digital platforms, including Zoopla, USwitch, PrimeLocation, Money, Hometrack, and The Property Software Group.
"ZPG's proposal is highly opportunistic and fundamentally undervalues the company and its prospects", Sir Peter Wood, GoCompare's chairman, said of the approach, which was made on November 8.
Shares in GoCompare jumped almost 10% on Tuesday after Sky News first reported the bid approach.