AURELIUS has acquired leading UK property services provider TM Group

Arrowpoint Advisory’s TMT sector team has advised AURELIUS on its acquisition of TM Group Limited (UK) from Dye & Durham Corporation, the Toronto Stock Exchange listed corporate (D&D). The transaction is valued at up to £91m with approximately £50m in cash at closing and up to £41m in potential additional earn-out payments. TM Group is a leading provider of property search aggregation services, suppling law firms with property searches, a key element of due diligence for all property purchases in the UK.

The transaction has received approval from the United Kingdom’s Competition and Markets Authority and completed on 10 August 2023.

TM Group has an established presence within the UK property market, providing search aggregation services which are a key component of the UK conveyancing process. Searches supplied include Title, Local Authority, Water & Drainage and Environmental. Many searches are mandatory in any conveyancing process and all searches are charged by solicitors as a disbursement cost within the property buying process in the UK. The company has achieved a leading market position. TM Group generated revenues of £62m in 2022.

Tristan Nagler, Partner at AURELIUS, commented: “This is a great opportunity for AURELIUS to invest in the UK property services space, in a strong platform for steady growth. TM Group’s services are essential to the UK conveyancing process, providing the business with a good level of demand within a market with high barriers to entry. We see a number of compelling opportunities to build on TM Group’s well established market position and look forward to bringing our operational expertise to partner with the incumbent management team. This corporate carve-out transaction from Dye & Durham is further evidence of our deliverability in a challenging M&A market.”

Tristan went on to add: “We were delighted to work alongside Arrowpoint Advisory on our investment in TM Group. The team’s deep track-record advising mid-market software and data companies combined with experience in delivering corporate carve-outs made them the perfect fit. We are grateful for their invaluable support and guidance throughout the process.”

Richard Fetterman, Managing Director at Arrowpoint Advisory, concluded: “We were delighted to provide buy-side advisory services to Tristan, Grayden and the wider team at AURELIUS on this exciting transaction in the UK PropTech space. AURELIUS is the perfect partner to assist management in its execution of both operational and growth initiatives to enable TM Group realise its full potential. The transaction also builds on Arrowpoint’s experience at assisting both financial and strategic clients deliver corporate carve-out transactions as well as guiding stakeholders through CMA initiated processes.”

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