Pretax profits at the company reached £61.1 million - up from £50 million at the same stage last year. The company's dividend per share grew by 25 per cent to stand at 25 pence.
Homeserve says that it plans to supplement organic growth over the coming years with acquisitions - and that this latest merger deal will allow it to fully implement its strategy of total home emergency cover.
Analysts claim that if the takeover does go ahead, it will create a contender with the power to challenge British Gas in the home and heating cover market - as British Gas currently dominates the market, with Homeserve and D&G as its closest, yet relatively distant, rivals.
Click here to run an energy price comparison, and see if you could be paying less for your gas and electricity.