Conveyancing technology provider Smoove has confirmed that discussions “remain ongoing” between itself and synchronised settlement platform PEXA over a takeover.
PEXA, which first made its way from Australia to the UK property market last year, was reported to be in discussions around acquiring Smoove as early as April, with the original 22nd May deadline for discussions already pushed back once since.
However, it has now been confirmed that the discussion period has been extended once more. Smoove, which is listed on the FTSE AIM All-Share index, issued the below on 16th June:
On 24 April 2023, the Company announced that it was in early discussions with PEXA Group Limited (“PEXA”), regarding a possible cash offer for the entire issued and to be issued share capital of the Company.
Discussions between the parties remain ongoing and, to allow further time for these discussions to continue, in accordance with Rule 2.6(c) of the Code, the Board has requested, and the Panel on Takeovers and Mergers (the “Takeover Panel”) has consented to, an extension to the deadline by which PEXA is required either to announce a firm intention to make an offer for Smoove in accordance with Rule 2.7 of the Code or to announce that it does not intend to make an offer, in which case the announcement will be treated as a statement to which Rule 2.8 of the Code applies. Such announcement must now be made by not later than 5.00 p.m. on 14 July 2023. This deadline can be further extended by the Board, with the consent of the Takeover Panel in accordance with Rule 2.6(c) of the Code.
There can be no certainty either that an offer will be made nor as to the terms of any offer, if made. A further announcement will be made as and when appropriate.
The Company remains in an “offer period” in accordance with the rules of the Code and the attention of shareholders is drawn to the disclosure requirements of Rule 8 of the Code, which are summarised below.
Who are Smoove?
Smoove plc has been providing software solutions for nineteen years. Their services include onboarding / homemoving software Smoove, conveyancing comparison platform eConveyancer, case management software DigitalMove, and compliance support from Legal Eye.
Who are PEXA?
Evolving from a government initiative in Australia more than 10 years ago, PEXA aims to bring financial institutions, lawyers, and conveyancers together through its platform to help homemovers safely settle their homes.
They are now bringing their technology, financial settlement model, and expertise to the United Kingdom, beginning with England and Wales.
Working in collaboration with the Bank of England, PEXA say they have introduced a “secure and resilient” way for their customers to complete housing transactions. Their technology aims to work alongside lenders, lawyers, and conveyancers in the United Kingdom, starting with remortgages (which launched in late 2022) and followed by their sale and purchase solution (launching 2024). Through this collaboration, they say their aim is “to support our customers in achieving greater operational resilience and efficiencies, and set the new standard for how Britons remortgage, buy, and sell houses”.
