Rightmove has acquired Van Mildert Landlord and Tenant Protection Limited, a company that provides tenant referencing services and rent guarantee insurance products.
Rightmove believes the deal, worth £16m, will “further augment” the Rightmove Tenant Passport proposition and its vision of servicing the “under-served rental marketplace”.
Van Mildert’s founder, Christian Balshan will continue to lead the Van Mildert team from its Newcastle office.
Van Mildert delivered audited net revenues of £3.6m and profit before taxation of £1.4m for the year ended 30 November 2018, both up 19%. Van Mildert had gross assets of £3.3m as at 30 November 2018.
The purchase price comprises initial cash consideration of £16m, which will be funded from Rightmove’s existing cash reserves. Future deferred consideration is payable in 2022 covering the two-year period from January 2020 to December 2021 based on the revenue performance of the business, and is capped at £4m.
The transaction is subject to FCA change of control regulatory approval and is anticipated to complete by 31 October 2019.
Peter Brooks-Johnson, CEO of Rightmove, said: “We’re looking forward to welcoming Van Mildert, a highly respected tenant referencing company, to the Rightmove family.
“We believe the combination of Rightmove’s unrivalled reach and Van Mildert’s products and operational experience will augment the Rightmove Tenant Passport, helping in our quest to make renting a property faster, easier and more efficient for tenants, landlords, and agents alike.”