Begbies Traynor to acquire London-based brokerage Mantra Capital

Corporate restructuring specialist Begbies Traynor has agreed to acquire London-based property finance brokerage Mantra Capital and its Axiom Consulting & Investments and Ellayaan subsidiaries.

Begbies Traynor said on Monday that it will make an initial consideration of £4.5m for Mantra, made up of £4.0m in cash from existing facilities and the issue of 352,361 new ordinary shares.

The AIM-listed group said the deal had a potential earn-out value of up to an additional £13.5m, in a mix of cash and shares, subject to delivering "material growth" in profits over the four years following completion.

Begbies added that Mantra will join with MAF Finance Group, which it acquired in May 2021, to form a national finance brokerage with complementary sector expertise, with the new entity expected to be immediately earnings enhancing.

Chairman Ric Traynor said: "The acquisition of Mantra is in line with our growth strategy to complement and expand our services and regional coverage, whilst enabling us to form a national finance business serving a wide range of sectors.

"We believe access to finance will be critical as the economy addresses its current challenges. BTG Funding Solutions will be a major addition to the support and advice we can provide, whilst enhancing our long-term organic growth prospects."

As of 1100 BST, Begbies Traynor shares were up 0.60% at 142.85p.

Reporting by Iain Gilbert at Sharecast.com