Digital property exchange platform PEXA is poised to fortify its presence in the United Kingdom by acquiring the UK-based e-conveyancing firm, Smoove, in a substantial $58.6 million (£30.8 million) transaction. Anticipated to conclude in the fourth quarter of 2023, this acquisition marks a significant stride in extending PEXA’s global footprint and aims to revolutionize the often lethargic conveyancing processes prevalent in the UK.
Glenn King, the CEO and Managing Director of PEXA Group, expressed his optimism about this acquisition, emphasizing how it would enable PEXA to introduce its advanced technology to the UK market. Additionally, it would bolster the company’s presence by granting access to over 75 conveyancer firms via the Smoove platform, and approximately 2,100 firms through Smoove’s work in arranging panels for lenders.
The acquisition also opens avenues for remortgage activities equivalent to seven percent of the UK market and sale and purchase transactions amounting to three percent of the UK’s sales and purchase market, all facilitated by the Smoove platform.
Furthermore, this strategic move offers the potential to cross-promote the PEXA platform to Smoove’s panel firms, establishing robust relationships with key Smoove customers, including Lloyds Banking Group.
Mr. King underscored the alignment of this acquisition with PEXA Group’s overarching strategy of harnessing its property exchange expertise to foster growth in diverse markets, beginning with the UK. He noted, “Since entering the UK market, the PEXA Group has launched its first re-mortgage product, successfully onboarded two lenders onto the PEXA platform, and acquired and integrated specialist re-mortgage conveyancer, Optima Legal.”
“The acquisition and integration of Smoove into the PEXA UK business will further enable us to address the numerous challenges faced by consumers due to the UK’s fragmented and inefficient conveyancing processes,” Mr. King added.
This acquisition will be fully financed from PEXA’s cash reserves and is contingent on the approval of Smoove shareholders.