Digcom, an indirect subsidiary of PEXA Group, has reached an agreement for a recommended all-cash acquisition of the entire issued and future share capital of Smoove.
The deal values Smoove at approximately £30.8m, offering 54 pence per share, and is set to be implemented via a Scheme of Arrangement under Part 26 of the Companies Act 2006.
The 54 pence per share offer represents a significant premium on the share value of Smoove and is some 69.3% up on the closing price of 31.9 pence on 21st April 2023.
The directors of Smoove intend to recommend the acquisition unanimously to the company’s shareholders.
PEXA sees the acquisition as a strategic move to leverage its property exchange expertise in new markets, starting with the UK. Both companies aim to streamline the home moving process through digitalisation and reduce transaction times.
“Smoove and PEXA share the common goal of simplifying and enhancing the home moving process. This acquisition offers a significant opportunity for Smoove’s customers to benefit from PEXA’s digital property settlements platform,” said a statement from the PEXA board.
Smoove has established relationships with over 75 conveyancer firms through its eConveyancer platform and has indirect connections with approximately 2,100 conveyancing firms via lender panels. PEXA believes that integrating Smoove will accelerate its growth in the UK market.
Smoove currently intermediates around 7% of the UK’s remortgage flows and 3% of sales and purchase flows.
The transaction is subject to approval by Smoove’s shareholders and relevant regulatory bodies.
