(Alliance News) - ULS Technology PLC on Monday announced the sale of its wholly-owned subsidiaries Conveyancing Alliance Holdings Ltd and Conveyancing Alliance Ltd to Project Ophelia Bidco Ltd.
ULS shares were up 25% at 76.00 pence each in London on Monday morning.
The Thame, Oxfordshire-based online platforms for conveyancing and financial intermediary markets said the proceeds from the GBP27.3 million sale will be used to repay all of the company's existing debt facilities. The sale will leave approximately GBP25 million cash on the ULS's balance sheet, the company said.
Project Ophelia Bidco controls O'Neill Patient Solicitors LLP, which is the largest conveyancer on the CAL panel.
ULS Chair Martin Rowland said: "This is a pivotal moment for ULS with the disposal enabling us to accelerate our growth strategy. We believe that the consideration represents an attractive valuation, unlocking value for shareholders, whilst at the same time providing the capital to achieve our vision of building a digital platform that will transform the entire home moving and home owning process for consumers."
ULS added: "It has become increasingly clear to the board that Conveyancing Alliance, which provides an effective but simple conveyancing comparison site to individual mortgage brokers, does not support the group's vision.
"In contrast, eConveyancer's technology and B2B relationships provide a more comprehensive conveyancing panel management service to large mortgage broker networks, and to mainstream and specialist lenders. This creates a number of touch points with homebuyers and home owners which is a core part of the Group's strategy and its DigitalMove proposition."
ULS acquired Conveyancing Alliance in 2016 for GBP12.5 million. Since then, Conveyancing Alliance has generated GBP6.5 million in dividends for ULS.
By Greg Roxburgh; gregroxburgh@alliancenews.com
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