OnTheMarket is to fully acquire lettings platform Teclet after exercising its option to buy the remaining 80% of shares in its controlling company Glanty Ltd, although the deal has yet to officially complete.
In December 2019 the portal bought a 20% stake with a view to purchasing the remainder, which it will now complete by 28th May. This will include an initial payment of £2.9 million and later earnout payments that could take the total deal value to £12 million.
The purchase is the latest move by the UK’s portal into owning lettings automation software.
Zoopla pioneered this with its purchase of Alto and Jupix in 2016, while Rightmove ventured more tentatively into this arena with its purchase of tenant referencing firm Van Mildert in July 2019.
OnTheMarket’s new CEO Jason Tebb says the portal has been impressed with Teclet’s growth over the past 15 months as the lettings automation platform firm has grown its customer base and released new products, all of which will accelerate OTM’s digital commercial opportunities. Teclet is to stay at its North London base until after Covid has eased and a decision will be made then on whether its operations joins the OTM HQ in central London, The Negotiator understands.
This includes enabling agents to earn money from their OnTheMarket subscription by “directly presenting buyers, sellers, tenants and landlords with products and services that they can purchase at appropriate points in their property journey,” the portal says.
“As part of our strategy, we’ll be integrating Glanty’s products into our offering to create even better value for residential sales agents and lettings agents,” says Tebb.
“By building tools and providing best-in-class software, we’ll support increased efficiencies within their businesses that will assist agents in gaining a competitive edge.”
Alan Blockley (left), Chief Executive Officer of Glanty Ltd says: “We’re delighted that, having met Jason and after spending significant time understanding his vision for OnTheMarket’s future direction of travel, he shares our view that there is an opportunity for our software solutions, API partnerships and product providers to integrate seamlessly with the portal.”
Teclet, which was a Negotiator Awards winner two years ago, was launched by Blockley in 2017 to automate the lettings process after three years and £4 million of development. He also worked with future Countrywide CEO Alison Platt at Bupa during the nineties.