PEXA Group completes acquisition of Smoove PLC

PEXA Group Limited (ASX: PXA) (“PEXA“), a world-leading ASX-listed digital property exchange platform and property insights solutions business, is pleased to announce the completion of its acquisition of UK-based conveyancing technology provider Smoove plc (“Smoove“) (previously announced to ASX on 5 October 2023 and per the updated timeline published on 4 December 2023).  

PEXA Group Managing Director and CEO, Glenn King, said: “PEXA and Smoove share the common goal of simplifying and enhancing the home moving process through digitalisation. The acquisition will help both companies significantly reduce transaction times, while simultaneously removing the pain points across the process. 

“I am excited to welcome the Smoove team to the PEXA Group. This acquisition will further assist PEXA in bringing its world-leading technology to the UK market. Smoove’s position in the UK market will allow us to build additional scale and depth, while allowing the PEXA product suite to reach more customers.” 

The acquisition of Smoove via a UK scheme of arrangement was overwhelmingly approved by Smoove shareholders on 14 November 2023. The acquisition was sanctioned by the court on 15 December 2023 (UK time) and became effective on 19 December 2023 (UK time). Smoove will be delisted from the Alternative Investment Market of the London Stock Exchange by 7am on 20 December 2023 (UK time). 

The acquisition values Smoove at £30.8 million (A$58.6 million) on a fully diluted basis and has been funded through cash currently held by PEXA, which has been drawn down from its existing facility and a newly established facility. 

Joe Pepper, PEXA’s UK Country Head, said: “We look forward to working together with the team at Smoove to provide innovative products and services that will help address the many detriments suffered by UK consumers due to the UK’s fragmented, inefficient conveyancing processes. 

“Smoove has built a customer-focused technology and services business with a multi-channel distribution network that spans mortgage brokers, banks, building societies, estate agents and direct-to-consumer websites, which we will benefit from as we broaden our UK presence.” 

Smoove’s primary product is e-Conveyancer, a panel management service that brings together conveyancers and introducers, such as mortgage brokers and lenders, and their customers to offer a two-sided conveyancer marketplace. Smoove has also invested in developing Smoove Complete (which, together with subsidiary Amity Law, provides a digital platform for consultant conveyancing lawyers) and SmooveStart (a digital customer onboarding and conveyancing solution for estate agents). It also owns Legal Eye, a provider of legal compliance services. 

Acquiring Smoove will help deepen PEXA’s presence in the market by providing access to: 

• More than 75 conveyancer firms through Smoove’s conveyancer platform, in addition to another 2,100 firms through Smoove’s role arranging panels for lenders across the UK market; 
• Remortgage flows equivalent to 7% of the UK market and sale and purchase flows across the Smoove platform that are equivalent to 3% of the UK’s sales1; 
• Opportunities to cross-sell the PEXA platform to panel firms of Smoove (which provides access to volumes both on and outside of the Smoove platform); and 
• Important relationships with key Smoove customers such as Lloyds Banking Group, which Smoove has been supporting since 2007. 

Mr King said: “We expect there to be a number of benefits in combining Smoove’s established relationships and capabilities with PEXA’s existing operations. These include opportunities to cross-sell Optima and PEXA UK’s remortgage offering to Smoove customers, opportunities to cross-sell PEXA UK’s sale and purchase offering in the future, and opportunities to leverage Smoove’s multi-collaboration toolkit to enhance PEXA’s product suite.” 

Smoove Chief Executive Officer, Jesper With-Fogstrup, said: “PEXA Group has a proven track record of successfully digitising the conveyancing industry in Australia.  This aligns with our strategy in the UK and we look forward to marrying PEXA’s impressive experience with our deep local knowledge to transform the home ownership experience in the UK.  This is an exciting opportunity for Smoove and we will focus on ensuring a smooth transition for customers, colleagues and all stakeholders in the coming months.” 

Further information on the integration of Smoove will be provided as part of PEXA’s Half Year Result announcement in early 2024. 

-ENDS- 

For further information please contact:  

Investors 

Hany Messieh – PEXA  
M: +61 414 446 876
E: investors@pexa.com.au   

Australian Media

Danielle Tricarico – PEXA  
M: +61 403 688 980
E: danielle.tricarico@pexa.com.au

UK media 

Issie Rees-Davies – MHP
M: 07712447161 
E: pexa@mhpgroup.com

About PEXA  

PEXA is a world-leading ASX-listed digital property exchange platform and property insights solutions business. Since 2014, PEXA has facilitated more than 16 million property settlements through the PEXA Exchange in Australia, with 88% market reach, and in 2020 PEXA launched in the UK. The PEXA Group of companies, including .id (Informed Decisions), Value Australia and Land Insight, delivers digital insights and property solutions that help government, financial institutions, banks, and property practitioners to unlock the future value of property.