PropTech pair-up shakes up lettings sector

A property software firm is set for growth after being bought by a fellow tech company in a deal backed by private investors.

Peterborough-based The Lettings Hub, which specialises in tenancy management software, has been bought by Canopy (Insurestreet Limited), a Sevenoaks-based firm known for its tech-driven tenant referencing and moving services. 

The transaction was supported by Growth Lending, Hay Wain and West Hill Capital.

Bosses say both companies will continue to operate independently while integrating key technologies to enhance their combined offer for tenants, landlords and letting agents. 

They add that the “transformative” move builds on an existing commercial relationship between the two firms and aims to deliver greater innovation and efficiency in the lettings process.

Heidi Shackell, chief executive The Lettings Hub, said: “The Lettings Hub team has worked tirelessly over the past 12 years to deliver fantastic lettings technology and products to our clients. 

“I’m incredibly proud of what we’ve achieved and the strong relationships we’ve built, and I’m also enormously grateful to every client that has used our services, every employee who has been a part of our growth journey, and to our shareholders for their unwavering support. 

“Special thanks to ICON for getting the deal across the line and securing such a great result.”

Chris Hutchinson, chief executive of Canopy, added: “For both businesses, this deal represents a transformative opportunity. 

“Together, we now support over 2500 letting agent clients and our combined resources allow us to expand our integrated services beyond what either of us could achieve individually. 

“By uniting our AI-driven technologies and shared passion for innovation, we’re in a stronger position to deliver for tenants, landlords, and letting agents alike.”

The Lettings Hub received financial advice from ICON Corporate Finance and legal support from Thackray Williams LLP. 

Canopy was provided financial advice from Bay Advisory, with legal counsel from Humphreys Law, CMS, SMB and Paris Smith, as well as accounting services from Wilson Partners.

Nicky Cotter, head of FinTech and co-founder of ICON, who acted for The Lettings Hub, added: “The UK PropTech market is becoming a competitive M&A battleground, attracting major global players. 

“So, it’s no surprise that ICON received considerable attention from international strategic buyers and Tier 1 PE houses for The Lettings Hub.”

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