Digital property exchange platform PEXA is set to acquire UK-based e-conveyancer, Smoove, in a $58.6 million (£30.8 million) deal.
Set to close in the fourth quarter of 2023, the acquisition will significantly extend PEXA’s global footprint and will aim to transform the often sluggish conveyancing process in the UK.
PEXA Group Chief Executive Officer and Managing Director Glenn King said acquiring Smoove would help PEXA bring its technology to the UK and deepen its presence in the market by providing access to more than 75 conveyancer firms through Smoove’s platform, along with about 2100 firms through the work Smoove does in arranging panels for lenders.
There will also be remortgage flows equivalent to seven per cent of the UK market and sale and purchase flows across the Smoove platform that are equivalent to three per cent of the UK’s sales and purchase market, which are intermediated by the Smoove platform.
In addition to that, there will be opportunities to cross-sell the PEXA platform to Smoove’s panel firms and the ability to build strong relationships with key Smoove customers such as Lloyds Banking Group.
“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,” Mr King said.
“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 be entirely funded through PEXA’s cash reserves and is subject to approval by Smoove shareholders.