Australian homemoving operator Pexa has agreed to buy agency and conveyancing software provider Smoove for £30.8m in a move that will boost its presence in the UK.
Pexa says the purchase if the Aim-listed business will give it access to around 7% of UK remortgages generated via Smoove’s platform.
It also gains access to more than 75 conveyancer firms on the UK firm’s conveyancing site, and a further 2,100 businesses that work with Smoove to arrange panels for lenders across the UK market.
Pexa, founded in 2008, plans to take advantage of cross-selling opportunities between its platform and the UK-based business.
Smoove, founded in 2003, connects homebuyers, brokers, conveyancers and estate agents on its platform.
The Smoove board of directors say they will unanimously recommend this fully diluted scheme of arrangement to its shareholders, worth 54p per share. If approved, the sale is expected to be completed by the end of the year.
Pexa Group CEO and MD, Glenn King, said: “The acquisition is aligned with PEXA Group’s strategy of enhancing and leveraging our property exchange know-how to deliver growth from different markets, including in other Torrens title jurisdictions, starting with the UK.
“Since entering the UK market, the Pexa Group has launched its first re-mortgage product, successfully brought two lenders onto the PEXA platform and acquired and progressed integration of specialist re-mortgage conveyancer, Optima Legal.
“The acquisition and integration of Smoove into the Pexa UK business will further help us address the many detriments suffered by consumers due to the UK’s fragmented, inefficient conveyancing processes. The acquisition will allow us to build additional scale and depth in the UK market, enabling the PEXA product suite to reach more customers, whilst streamlining and improving the UK property transaction experience.”
