Smoove said that the cash offer would be for the entire issued and to be issued ordinary share capital of the company.
The propety fintech company said: “Discussions with Pexa remain at an early stage. Accordingly, there can be no certainty that an offer will be made for the company, nor as to the terms on which an offer may be made for the company, nor as to the terms on which an offer may be made.”
Smoove said that due to the announcement, the offer period had started and Pexa would need to announce a firm intention to make or not make an offer on the company by 5pm on 22 May in conjunction with guidelines.
It added that it was also considering an “alternative potential transaction” proposed by a separate third party, which would not lead to an offer for the company.
Smoove was launched in 2003 and listed in 2014 on the Alternative Investment Market.
The company offers IT solutions to the UK home moving market. It includes Econveyancer, Smoove Start, Smoove Complete and Smoove Home.
Smoove bought a stake in Legal Eye in 2015, and then bought a stake in the Homeowners Alliance.
It also bought Conveyancing Alliance in 2016, and then sold it for £27.3m in 2020 to “fund the development of its portfolio of disruptive digital technology”.
Pexa making moves in the UK market
Pexa entered the UK market last year, welcoming Shawbrook and Hinckley and Rugby Building Society as the first lenders on the platform.
Last year, Pexa bought Optima Legal from Capital to support the roll-out of its digital property exchange process in the UK.
The fintech has also teamed up with Iress, Ncino, Sopra Banking Software and Ohpen to identify opportunities to enhance integration with lenders and brokers.
The company has also added PLS Solicitors, The Partnership, and Dutton Gregory Solicitors to its network as new customers.
