The acquisition results in LSL, Connells and the existing management team entering into an equal joint share venture, with LSL and Connells each paying £672,000 for a 33.33% share in the business.
Established in 1991, the LMS Group is a leading provider of conveyancing and remortgaging panel management services to many of the country’s largest mortgage lenders. In addition LMS provides a range of conveyancing related services to numerous mortgage brokers and estate agents. The venture will lead to both LSL and Connells representatives joining the LMS board and is expected to offer significant longer-term opportunities to the lender and legal communities.
Andy Knee, managing director at LMS, said: “Whilst LMS has adapted well to the challenges of the market and remained profitable despite the significant downturn in housing and remortgage transactions over the last few years, we came to appreciate that our customers generally and lenders, in particular, are seeking not just good service levels but also the reassurance of longer term financial security and stability.
"This new joint venture will allow us to offer this and also open up mutually beneficial business opportunities allowing us to provide our flexible and effective solutions to the emerging needs of lenders that bulk conveyancing firms will find difficult to match.
“LSL and Connells have an outstanding track record and provide the perfect ‘fit’ for our business and I am excited at the prospect of working with them in the future.”
David Livesey, group chief executive at Connells, added: “Developments in transactional conveyancing and the increasing number of lenders taking greater control over their conveyancing panel mean that now is an ideal time to invest in a best-of-class panel management provider. LMS will enhance Connells’ proposition to our lender partners, providing an effective and profitable addition to the Connells Group.”
Simon Embley, chief executive officer at LSL, said: “This investment is in line with our desire to ensure that we have a market leading conveyancing proposition for our lender clients. Combining our financial strength and scalability with LMS’ proven track record will mean that we are in the driving seat to deliver innovative industry led solutions. We very much look forward to working with both LMS and Connells in the future.”
