Fairpoint Group said the acquisition accelerated its strategy of extending the group from a debt solutions business for heavily indebted consumers into a broader based financial solutions business for financially stressed consumers.

Moneyextra.com, which was established in Woodmansey near Beverley in 1995, enables consumers to compare prices in insurance, utilities, media, mobile phones, lending products, savings and investments.

Fairpoint said that as part of the Fairpoint Group Moneyextra would benefit from shared overheads and sales and marketing, while bringing Fairpoint a comparison platform.

The eventual purchase price will depend on the profits generated in Moneyextra and is expected to be about £8 milllion.

Chris Moat, CEO of Fairpoint, said: “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.”

Simon Taylor, chairman of Moneyextra, said: “This is an exciting deal for Moneyextra and our team. The natural synergies and shared market knowledge between the two companies will enable us to help more consumers improve their finances and for the group to compete on a profitable footing at a time when the price comparison market is commoditising.”