Portal OnTheMarket (OTM) has reduced the amount it’s paying for lettings platform Teclet after acquisition rules put in place in May last year kicked in.

In February 2020 OTM bought 20% of Glanty Ltd, the holding company that owns Teclet, for £900,000 and then 15 months later exercised an option to buy the rest of the company for £2.9 million but with later earnout clauses that brought the total deal value to £12 million.

But that initial £2.9 million is now being reduced by £147,000 based on the previously announced post-completion adjustment mechanism based upon Glanty’s net cash/net debt and actual working capital position as at completion.

The reduction is not in cash but via the return of 163,154 OTM shares given to Glanty as part of the deal, at a value based on May 2021 rather than today’s £1 a share price. Of the balance of 1,36 million shares received by Glanty’s original owners, 423,589 are locked in for three years and 942,089 are locked in for four years from 28 May 2021.

Lettings proptech

Teclet was launched in 2017 by Alan Blockley, its CEO, as a could-based platform for letting agents, enabling them to automate many of the sector’s burdensome red tape including property licence checking, tenant screening and referencing, tenancy deposits, inventory management, deposits management and property management.

It has gained a significant number of agents along the way, with high-profile wins including branches of Hunters, Chestertons and Haart.