ULS acquires Broker Conveyancing

ULS Technology has acquired 100% of Conveyancing Alliance in a deal worth up to £12.5m.

Related topics:  Finance News
Rozi Jones
20th December 2016
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Conveyancing Alliance operates under three separate brands: Conveyancing Alliance and Agency Convey, targeted at the estate agency sector, and Broker Conveyancing, targeted at the mortgage broker sector.

The business has grown its revenue from £3.8m in 2014 to £4.4m by the end of 2015 and PBT from £808k to £949k over the same period.

ULS has acquired the entire issued share capital of Conveyancing Alliance from Harpal Singh, Jitna Singh, John Phillips, Angela Phillips and Paul Duckworth for an initial cash consideration of £7.2m plus an earn-out, payable in cash.

Under the terms of the earn-out, ULS will pay the Vendors between 0.5-1.75x annualised PBT for the period from completion to 31 March 2018, and the same amount for the 12 months ended 31 March 2019, up to a maximum total consideration of £12.5m.

ULS will also pay the Vendors £829,264 in respect of Conveyancing Alliance’s surplus cash in the bank at the close of business on completion. The Vendors are committed to remaining with the business until 31 March 2019.

Ben Thompson, Chief Executive Officer of ULS, said: "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.

"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.

"We thoroughly look forward to working with the Conveyancing Alliance team to enjoy even stronger future success."

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