Begbies Traynor acquires Newcastle-based insolvency outfit

(Sharecast News) - Financial advisory Begbies Traynor has acquired Newcastle-based insolvency practice KRE for a maximum consideration of £600,000.Begbies snapped up the five-man outfit with an initial consideration of £450,000 and agreed to pay an additional £150,000 if the group achieves certain targets for growing revenue in the year directly following completion.The acquisition, which Begbies expects to be earnings enhancing, both initially and after any additional consideration is paid, will be on a cash free, debt free basis.Chairman Ric Traynor said: "This acquisition is in line with our strategy to develop our market-leading business recovery practice, alongside our property services consultancy, and brings additional expertise and relationships to our existing operations in Newcastle and the broader North East region."KRE reported annual revenues of £400,000 and pre-tax profits of £100,000 in the year ended 30 June 2018.As of 0900 GMT, Begbies shares had dipped 1.19% to 61.66p.