LSL and Connells acquire stake in LMS
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LSL Property Services and Connells have today acquired an interest in Legal Marketing Services and LMS Direct Conveyancing through an investment in Cybele Solutions Holdings Limited, the ultimate parent company of LMS and LMS DC.
This is an equal share joint venture between LSL, Connells and the existing members of the management team of the LMS Group.
The LMS Group operates a conveyancing and remortgage panel management business mainly for lender clients and also provides conveyancing services.
The consideration payable by LSL for its 33.33% share is £672,000 which LSL is funding from existing banking facilities.
The agreement includes options that, if exercised, would enable both LSL and Connells to increase their investment in the future from 33.33% to 50% each.
As at March 31 2011 the gross assets of the LMS Group amounted to £4,069,000. For the year ended March 31 2011 it had made a profit after tax of £591,000.
LSL says the move demonstrates its strategy to grow long term profitability in the provision of residential property services in the UK, by identifying value enhancing opportunities.
Further, the investment strengthens LSL’s relationships with its key lender clients.
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