Belvoir Group PLC (LON:BLV) announced it exchanged contracts to acquire the entire issued share capital of Nottingham Mortgage Services (NMS), a wholly-owned subsidiary of the Nottingham Building Society.
The deal is valued at £600,000 to be paid in cash from existing cash resources, the estate agents said, with completion scheduled for 31 July.
READ: Belvoir Group raises full-year guidance as pent-up demand boosts revenues
The AIM-listed firm said the acquisition is expected to be immediately earnings accretive.
NMS delivers tailored mortgage and protection services to the members and customers of The Nottingham with its team based either in The Nottingham's branches, or from The Nottingham's Head Office, with NMS facilities in all 48 Nottingham Building Society branches across nine counties.
The in-house NMS mortgage team of 27 will move over to Belvoir but continue to serve The Nottingham branches and members as they do currently.
In the year to December 2020, NMS reported revenue of £1,743,000 and operating profit of £255,000. The current year projected operating profit is £175,000, net of ongoing introducer payments to The Nottingham.
Given the existing presence of Belvoir Group franchisees within The Nottingham branch network, this enables Belvoir to extend its property services offered to The Nottingham's customers to encompass property sales, lettings and financial services, the firm said.
Currently 39 of the 48 Nottingham Building Society branches are dual-branded with a Belvoir Group franchise.
At the same time, The Nottingham is entering into a 10-year agreement with Mortgage Advice Bureau (MAB) to provide mortgage and protection advice, through Belvoir as an appointed representative of MAB, to its members via its branch network and over the phone.
This service will be extended to users of The Nottingham's 'Beehive Money' app when it launches later this year.
This further strengthens Belvoir's strategic alliance with The Nottingham following Belvoir's undertaking of all estate agency and lettings services through The Nottingham's branch network in 2020, the group said.
"This is a significant step for Belvoir as we extend our partnership with The Nottingham and enable the continuation of mortgage advice to their members and to new members in the BeeHive Money app through our team of MAB advisers,” said Dorian Gonsalves, chief executive of the Belvoir Group.
“Our strategic alliance is embedding really well across the network for estate agency and together we can help people not only find their new home but also fund it with the right mortgage for them."
---updated to add video---