Rightmove has completed the £16m acquisition of Van Mildert, a company that provides tenant referencing services and rent guarantee insurance products.
Rightmove announced the deal earlier this year but was waiting for approval of the deal from the FCA, which as now been granted.
Rightmove said Van Mildert has a “strong brand” and is well positioned within the rental marketplace, and added the products and operational experience of the company will “further augment the Rightmove Tenant Passport proposition and Rightmove’s vision of servicing the under-served rental marketplace”.
Van Mildert’s founder, Christian Balshan will continue to lead the Van Mildert team from their 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 also had gross assets of £3.3m as at 30 November 2018.
The purchase price comprises of an initial cash consideration of £16m, which will be funded from Rightmove’s existing cash reserves, with an additional £4m to be paid if if it hits profit and expansion targets.
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.”