Conveyancing giant Smoove has revealed it is in talks about a possible takeover of the company.

In an announcement to the Stock Exchange, the firm said rival Australian group PEXA was interested in making a cash offer for the business.

Smoove also said another party was considering investing without the option of a buyout.

The fintech firm, formerly known as ULS Technology, is the platform used by thousands of estate agents.

“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,” the statement reads.

“The board of the company also confirms that it is considering an alternative potential transaction proposed to it by a separate third party.”

Made a loss

Smoove made a loss of £3 million in the six months up to the end of September last year. There was an EBITDA loss of £2.6m despite a revenue increase of 4% to £10.6m.

Smoove said investment in new products such as eConveyancer explained the loss, and that its underlying finances were healthy.

Last year, the company launched a digital onboarding platform called Smoove Start, and it said 30 branches across 18 firms were signed up.

The Smoove brand with a pink logo and hellosmoove.com website were created a year ago when the firm decided a new look was needed.