LONDON (ShareCast) - (Sharecast News) - London estate agent Foxtons said on Tuesday that it has bought lettings agency Ludlow Thompson for £10m in cash.

Ludlow Thompson operates across seven branches in London, generating more than 70% of total revenue from lettings.

Foxtons said the deal will support future earnings growth as the business is integrated into the company's scalable operating platform, "enabling synergies to be unlocked and attractive returns on invested capital to be realised".

It expects the acquisition to be accretive to 2024 earnings and deliver an attractive return on capital in line with its target return on capital for acquisitions of 20%.

Chief executive Guy Gittins said: "Having established a leading position in its local markets and a reputation for delivering the best results for customers, it is clearly a business which we believe is a perfect fit for Foxtons. I am very much looking forward to meeting the Ludlow Thompson team over the coming days and welcoming them into Foxtons.

"The acquisition reflects continued progress against our acquisition strategy and our focus on growing recurring lettings revenues, and further supports the delivery of our £25m to £30m operating profit ambition in the medium term."

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