"The acquisition will allow us to build additional scale and depth in the UK market, enabling the PEXA product suite to reach more customers"
Digcom, the UK subsidiary of PEXA Group, has acquired Smoove, formerly known as ULS Technology.
Under the terms of the acquisition, Smoove shareholders will receive 54 pence for each Smoove share, valuing the capital of Smoove at approximately £30.8 million.
The firm first announced that it was in early discussions with PEXA regarding a possible takeover in April this year.
Established in 2010, PEXA is the operator of a digital property settlements platform in Australia which has facilitated over 13 million property transactions to date.
PEXA established Digcom in 2020 to enable it to enter the UK property market. The PEXA Group launched its initial remortgage offering in the UK in September 2022 following the successful testing of the PEXA settlement payment solution with the Bank of England. Shortly after the UK launch, Digcom acquired Optima Legal, a remortgage conveyancing firm that provides legal services in the UK remortgage market. A sale and purchase platform due to launch in 2024.
Smoove has a long-standing relationship with Lloyds Banking Group and a connection with over 75 conveyancer firms on its eConveyancer platform and circa 2,100 conveyancing firms via lender panels.
PEXA says both firms share the common goal of simplifying and enhancing the home moving process through digitalisation, significantly reducing transaction times, whilst simultaneously removing the pain points across the process.
The acquisition is expected to become effective by the end of Q4 this year.
Glenn King, PEXA Group's CEO and managing director, 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 remortgage 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."
Martin Rowland, chairman of Smoove, commented: "Both Smoove and PEXA share a common objective, to simplify and improve the home moving experience for consumers. The acquisition of Smoove by Digcom accelerates execution of the plans for both Smoove and PEXA. Whist the board of Smoove continues to believe in Smoove's strategy and prospects as an independent company, they believe that the combination may provide Smoove with additional scale and help accelerate its plans to materially change the home moving experience."
