Two property franchise businesses are set to merge.

The boards of The Property Franchise Group plc (TPFG) and Belvoir Group plc, which has offices in Cheltenham and Gloucester, have reached agreement on the terms and conditions of a recommended all-share merger to create a leading property franchise business, the Combined Group.

The Combined Group will benefit from increased scale with more than 930 property franchise locations, managing approximately 152,000 tenanted properties across the UK and will be expected to sell more than 28,000 properties per annum.

For the financial year ended December 31, 2022, TPFG and Belvoir together generated in excess of £60 million in combined revenue, with management service fees of approximately £27 million and adjusted EBITDA of approximately £22.5 million.

Paul Latham, non-executive chairman of TPFG, said: "I am delighted to confirm that we have reached an agreement with the Belvoir board and major Belvoir shareholders on the merger with Belvoir. We believe that the merger represents a compelling opportunity for all shareholders.

"Belvoir brings further breadth through its nationwide network and a financial services business which will be complementary to our current offering. The merger will enable us to continue to grow in the sector and, ultimately, deliver greater value to shareholders of the Combined Group."

Jon Di-Stefano, non-executive chairman of Belvoir, said: "The merger of Belvoir and TPFG combines two businesses with much in common, each supporting a network of entrepreneurial franchises, and will create one of the UK's largest multi-brand lettings and estate agency groups combined with a growing financial services business.

"With their complementary geographic footprints providing both scale and diversification across a variety of high street and hybrid brands combined with high levels of recurring revenue, we feel sure that the Combined Group will provide a robust platform from which to grow."