Begbies Traynor (AIM:BEG) Group PLC has announced the £3.25 million acquisition of Nottingham-based SDL Property Auctions.
With the new acquisition set to be integrated into Begbies’ property wing Eddisons, the AIM-listed firm said the deal would broaden its geographical coverage across the Midlands.
“Our combined team will be one of the largest property auctioneers by volume nationally,” Begbies executive chairman Ric Traynor said.
“The acquisition of SDL Property Auctions is in line with our strategy to develop our property advisory and transactional services division, by increasing both its scale and market position, as well as the scope of its service offering and geographical coverage.”
Professional services firm Begbies paid an initial cash consideration of £2.5 million for SDL, with a further £0.75 million set to be offered given revenues are maintained for a year after the deal.
This was on a debt-free basis, Begbies added, coming from its existing resources whilst leaving “significant headroom available for further acquisitions and investment”.
SDL penned pre-tax profits of £0.5 million in the year to March on the back of revenue of £4.5 million.
Begbies shares climbed 0.65% to 114.24p.