Begbies Traynor acquires David Rubin and Partners

Corporate restructuring group Begbies Traynor has announced the acquisition of David Rubin and Partners, an insolvency practice with offices in London and Guernsey, for a cash consideration of £25m.

The deal includes an initial consideration of £12m, with a deferred payment of up to £13m dependent on the financial performance of David Rubin and Partners across the next five years.

Begbies’ largest acquisition to date, the transaction is intended to deliver an increase in the scale of the group’s business recovery and financial advisory arm, while also extending its operations in the “key London market”.

Ric Traynor, executive chairman at Begbies, said: “This acquisition is our largest to date and is expected to be immediately earnings enhancing.

“It leaves the group well-positioned to increase its market share and continue to grow its business recovery and financial advisory revenues.”

An equity fundraising initiative of £22m was also launched by the group, as it looked to “satisfy initial cash consideration” for the acquisition.

Some £10m is set to be raised through a vendor placing, with £12m gained via a cash placing and PrimaryBid offer.

With a fixed price at 105.50 pence, the shares are expected to be admitted to trading on AIM on 17 March 2021.

Traynor added: “With the benefit of our recent acquisitions and other organic growth initiatives the group is well positioned to deliver material growth in the 2021-22 financial year.”