Insolvency specialists Begbies Traynor Group has sold its tax division to Smith & Williamson for an initial consideration of £2.9m.
As previously announced the deal will allow the group to focus on its two core businesses - insolvency and global risk partners - and will be subject to routine completion account adjustments around normalised levels of working capital.
The deal is also the latest signal that top 10 accountancy firm Smith & Williamson is continuing to grow as a national player.
Smith & Williamson will receive an annual fee income of £180m and take on an additional 55 staff, including 12 partners, located principally in Birmingham, London and Manchester. The incoming team includes private and corporate tax professionals with particular strength in tax investigations consultancy and the sports, media and entertainment sectors.
This means the enlarged firm will employ almost 300 tax professionals across all offices and generate income of £40m from its tax business.
Kevin Stopps, managing director of Tax & Business Services at Smith & Williamson, said it was an excellent strategic fit between the new team and Smith & Williamson, both in terms of geography and service provision. “The incoming Birmingham tax professionals will be working alongside our existing investment management team. This combination of tax and investment advice will significantly enhance the services offered by Smith & Williamson to clients in the Midlands and helps to set us apart from others,” he said.