Residential agent-backed OnTheMarket has bought a 20% share in lettings portal owner Glanty as it continues its aim to create an alternative to Rightmove and Zoopla.
The firm has also agreed an option to acquire the remaining 80% of the business for a cash consideration of £1.5m.
OnTheMarket will initially subscribe for new shares representing the 20% equity stake in Glanty for a cash consideration of £797,000, spread over 10 months from signing.
Glanty is the owner and developer of Teclet, an automated portal for the lettings industry, designed to reduce overheads and maximise efficiencies for lettings agents. The business turned over £771,365 in the year ended 31 December 2018, up from just £6,209 a year earlier.
OnTheMarket said its investment in the company would fund its working capital requirements until summer 2021, when it expects it to break even.
Alongside the acquisition of a share in Glanty, OnTheMarket has raised £3.4m itself through a share placing.
To send feedback, e-mail samantha.mcclary@egi.co.uk or tweet @samanthamcclary or @estatesgazette
