Foxtons has announced the acquisition of two estate agents worth £10.55m.
The listed agency giant has acquired IMM Properties Ltd, trading under the name Gordon & Co in south London and Stones Residential in north London.
The acquisitions are described as high quality estate agents with strong lettings businesses that together generate over 80% of their total combined revenues from lettings services across 2,500 tenancies.
Gordon & Co is being acquired for total consideration of £8.35m, adjusted for current assets less total liabilities at completion.
A stock market update from Foxtons said £1.5m of the consideration is deferred for a period of 12 months subject to the business achieving certain performance targets.
The business is being bought from certain private individual shareholders.
Stones Residential is being acquired for total consideration of £2.2m, adjusted for current assets less total liabilities at completion .
Of this, £0.2m is deferred for a period of 12 months subject to the business achieving certain performance targets.
Nic Budden, chief executive of Foxtons, said: “Acquiring Gordon & Co and Stones Residential is a great opportunity for Foxtons to expand our coverage and reinforces our position as London’s largest lettings agent.
“We look forward to welcoming the teams to the Foxtons Group. Since 2019, we have acquired six lettings portfolios and grown our tenancies by 40%, which demonstrates good progress against our strategy to generate attractive returns for our shareholders.
“We now serve over 27,500 tenancies, which alongside financial services, deliver resilient and recurring revenues and represent around 70% of our Group turnover.”