Ruthvik
Oct 12,23
2 mins read
PEXA Acquires Smoove In A $58.6 Million Deal
In a significant move aimed at further advancing its global reach, PEXA Group Limited (ASX: PXA), a leading digital property exchange platform and property insights solutions company, has announced its intention to acquire the UK-based conveyancing technology provider, Smoove plc. This strategic acquisition is set to pave the way for PEXA’s expansion into the UK market, enhancing its presence and offerings in the industry.
Under the terms of the acquisition, Smoove shareholders will be entitled to receive 54 pence in cash for each share they hold, amounting to a total consideration of £30.8 million (A$58.6 million), valuing Smoove at a substantial figure on a fully diluted basis. This acquisition will be funded through PEXA’s existing cash reserves, drawn from its facilities, including a newly established one with a limit of $40 million AUD.
Smoove, a notable player in the UK conveyancing market, offers technology-based solutions like e-Conveyancer, Smoove Complete, SmooveStart, and owns Legal Eye. The acquisition of Smoove will allow PEXA to access over 75 conveyancer firms, remortgage flows, and sales and purchase flows, opening doors to cross-sell PEXA’s platform to Smoove’s panel firms.
PEXA Group CEO and Managing Director, Glenn King, expressed enthusiasm about the deal, stating that it aligns with PEXA Group’s strategy of expanding into other markets. The acquisition of Smoove is expected to streamline and enhance the UK property transaction experience, addressing the challenges posed by the country’s fragmented conveyancing processes.
The acquisition will be executed through a UK court-sanctioned scheme of arrangement under the UK City Code on Takeovers and Mergers. It is subject to certain conditions, including approval by Smoove Shareholders and UK regulatory approvals. The acquisition is anticipated to be effective in Q4 2023, furthering PEXA’s global reach and technological innovations.
This strategic move marks an exciting chapter in PEXA’s journey as it continues to revolutionize the property exchange industry on a global scale, bringing the benefits of its technology and expertise to a broader audience.
