Foxtons Group PLC has acquired Ludlow Thompson Holdings Limited and its subsidiary companies for a consideration of £10m on a cash and debt-free basis.
The deal will be funded through the group's existing cash resources and £20m revolving credit facility.
Ludlow Thompson is an estate agent founded 30 years ago, operating across seven branches in London and generating over 70% of total revenue from lettings.
The purchase aims to support future earnings growth by integrating into Foxtons’ operating platform.
Foxtons is now a lettings-focused business, with over 70% of group revenue derived from this.
Of the £10m, £1.5m will be deferred for one year subject to the business delivering against certain performance targets.
The company is being bought from private individual shareholders.
Guy Gittins, CEO at Foxtons, commented: "We are delighted to have completed our acquisition of Ludlow Thompson.
“Having established a leading position in its local markets and a reputation for delivering the best results for customers, it is clearly a business which we believe is a perfect fit for Foxtons.
“I am very much looking forward to meeting the Ludlow Thompson team over the coming days and welcoming them into Foxtons.”
Stephen Ludlow and David Thompson, co-founders of Ludlow Thompson, said in a joint statement: "Having founded the business 30 years ago, taking the decision to sell the business was a major milestone for us, our colleagues, and our clients.
“We have admired Foxtons for a long time, and Foxtons was a natural fit for us, in fact, our processes, culture, and market positioning is based on the Foxtons model.”
