Conveyancing Alliance acquired by ULS
In a deal worth up to £12.5million, ULS Technology has acquired 100% of Conveyancing Alliance.
Operating under three brands, Conveyancing Alliance targets both the estate agency sector with Agency Convey, as well as the mortgage broker sector with Broker Conveyancing.
The business’ revenue has increased from £3.8 million in 2014 to £4.4 million by the end of 2015, as well as PBT growing over the same period from £808,000 to £949,000.
The entire issued share capital of Conveyancing Alliance has been acquired by ULS, from Jitna Singh, Harpal Singh, John Philips, Angela Philips as well as Paul Duckworth. This was in exchange for an initial cash consideration of £7.2 million as well as an earn-out which was payable in cash.
ULS will pay the vendors, under the earn-out terms, between 0.5-1.75x annualised PBT from completion to 31st March 2018. The same amount will also be paid for the next 12 months, ending 31st March 2019, with a maximum total consideration of £12.5 million.
Also, ULS will pay £829,264 to the vendors, in respect of Conveyancing Alliance’s surplus cash in the bank, following the close of business on completion. The vendors are committed to remaining with the business until 31st March 2019.
Commenting on the acquisition was the Chief Executive Officer of ULS, Ben Thompson, who stated:
“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.”