Watford-based residential estate agent Imagine Property Group has been acquired by London-based Foxtons.
Imagine is one of two agents acquired by Foxtons alongside Reading-based Haslams. Watford-based Imagine was initially acquired for £5 million with £1m deferred while Haslams was acquired for an initial sum of £7.6m plus a deferred figure of £2.4m. The deferred money is linked to performance targets.
Both businesses are being bought from private individual shareholders.
The acquisitions, which are expected to deliver attractive long-term returns on capital, will be funded using the group’s existing £30m loan, which has the option to be extended to £40m subject to bank approval.
Guy Gittins, Foxtons chief executive, said: “Our latest acquisitions add to our strong track record of identifying, acquiring, and integrating high quality lettings businesses to deliver attractive returns and are a key part of our strategy to deliver £25-30m adjusted operating profit in the medium term.
“We are delighted to have completed the acquisitions of Haslams and Imagine as we continue to pursue acquisitive lettings growth, to supplement our organic growth strategies.
“We have been impressed with the quality of both businesses which hold established leadership positions in their local markets and have built long-standing client relationships over many years, making them a great fit with Foxtons.
“Reading and Watford are new markets for Foxtons and reflects our confidence that the Foxtons Operating Platform, and in particular our technology, data and reach can unlock new growth opportunities in these new markets.”
Mike Cole, Imagine Group managing director, said: “After leading the business for nearly 20 years, the time was right for new energy and investment. The property landscape is changing, and it is essential agents have the best technology, marketing and brand awareness to stay ahead, which is why we chose Foxtons to take the business forward.
“Foxtons’ expansion into Hertfordshire is one of the most exciting developments the local market has seen for two decades, and I have no doubt our exceptional staff and long-standing clients will be excited about our offering being supercharged by Foxtons.”
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