OnTheMarket to buy 20% of proptech firm Glanty

OnTheMarket to buy 20% stake in proptech firm, Glanty, a teclet software operator, with plans to buy the rest of the company in the near future.

The initial 20% stake in Glanty will cost OnTheMarket (OTM) £797,000. Both OTM and Glanty are currently loss-making.

Teclet, designed for the lettings sector, was launched in 2016 and plans to break even in 2021.

OTM, which also believes it could break even in 2021, has an option to acquire the other 80% of Glanty in an earn-out arrangement.

That would involve an initial £1.5 million, and OTM would have to pay off loans of up to £1.4 million.

There would be a potentially deferred consideration of up to £12 million in cash and shares.

The option is exercizable over 15 months. If not taken up, OTM could sell back its 20% stake.

Teclet, aimed at helping letting agents with compliance, will be offered to OTM agents. Teclet has announced inroads into the lettings industry, notably in a deal with Hunters. The teclet deal comes as OTM also announced a dilution of its shares, raising £3.4m (£3m after expenses) at 70p a share.

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