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(Alliance News) - Business recovery and advisory firm Begbies Traynor Group PLC said Friday it acquired smaller peer Alexander Lawson Jacobs Ltd for up to GBP6.4 million in cash and shares.
Begbies will pay an initial GBP2.4 million through a mixture of cash and new shares in Begbies. Of this initial consideration, Begbies will pay GBP2.1 million in cash and the remainder through the issue of 296,195 shares.
A further GBP4.0 million in cash is payable on the achievement of unspecified financial targets over the following five-year period.
"I am very pleased to welcome the Alexander Lawson Jacobs team to the group," Begbies Executive Chair Ric Traynor said. "They are an experienced team with a strong recent growth record, which will enhance our existing strong network of offices across London and the South-East."
ALJ provides insolvency services and is ranked amongst the top 20 UK insolvency practices by number of appointments. For the year ended June, ALJ reported GBP900,000 in pretax profit on revenue of GBP3.1 million.
For the year ended April, Begbies generated GBP3.5 million pretax profit on revenue of GBP60.1 million.
"This acquisition is in line with our strategy to increase the scale and market share of our market-leading insolvency practice", Traynor added.
The acquisition of ALJ marks the third insolvency adviser takeover by Begbies in recent months. In late September, Begbies acquired Regeneratus Consulting 1 Ltd for up to GBP1.6 million before picking up Ernest Wilson & Co Ltd for GBP4.0 million in late October.
Together with the recent Regeneratus and Ernest Wilson purchases, Begbies expects the ALJ acquisition to be earnings enhancing in the current financial year ending April 2020 and subsequent years.
Shares in Begbies were 3.3% higher at 87.79 pence in London on Friday.
By Ahren Lester; ahrenlester@alliancenews.com
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