19th Dec 2016 16:30
LONDON (Alliance News) - B2B platform provider ULS Technology PLC on Monday said it has bought Conveyancing Alliance Holdings Ltd for an initial cash consideration of GBP7.2 million.
Conveyancing Alliance is a B2B technology platform in the UK for the selection and instruction of conveyancing.
ULS will also pay an earn-out until March 31, 2019, to be wholly satisfied in cash. The earn-out will be between 0.5 to 1.75 times pretax profit for the period from completion to March 31, 2018, and between 0.5 to 1.75 times pretax profit for the year ended March 31, 2019. The maximum consideration will be GBP12.5 million.
ULS will also pay GBP829,264 in respect of Conveyancing Alliance's surplus cash.
ULS added that it has entered into two new debt facilities with HSBC, one of which is a GBP5 million five-year term loan, the other of which is a GBP2 million three-year revolving facility. Half of the term loan is repayable in monthly instalments over the life of the loan, with the remainder due at maturity.
In 2015, Conveyancing Alliance made revenue of GBP4.4 million and a pretax profit of GBP949,000. ULS expects the acquisition to add significantly to earnings in the first full year of ownership.
ULS said it believes the acquisition delivers significant new growth opportunities in its conveyancing business and supports its stated strategy to become the leading handler of conveyancing in the UK.
"This acquisition is central to our strategy of growing market share in the UK conveyancing market and pursuing further growth via introductions from the estate agency market. Conveyancing Alliance has shown a strong track record of revenue and profit growth and fits neatly within ULS Technology and its plans for the future," Chief Executive Ben Thompson said in a statement.
"Around half of all UK conveyancing is bought by consumers following estate agent recommendations. Currently ULS has little presence in this sector, which is one of the reasons that the strategic fit with Conveyancing Alliance is so strong. Our combined offering is intended to provide highly competitive pricing and a modern technology service that makes customers' lives easier, enabling them to complete a home move painlessly and more quickly," he added.
Shares in ULS were trading up 0.6% at 74.47 pence on Monday afternoon.
By Karolina Kaminska; [email protected]; @KarolinaAllNews
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