Professional services insolvency consultancy Begbies Traynor has acquired London-based insolvency and business recovery practice Alexander Lawson Jacobs (ALJ) for an initial consideration of £2.35m.

Begbies said the acquisition of ALJ, a well-established firm ranked as a top 20 UK insolvency practice, was in line with its strategy to increase the scale and market share of the firm’s market-leading insolvency practice.

The AIM-listed group will pay £2.1m in cash from its existing resources, with another £250,000 to be satisfied through the issue of 296,195 new ordinary shares of 5p each.

ALJ is a well-established firm and is ranked as a top 20 UK insolvency practice, by insolvency appointments. The team of 24 directors and employees will join the Begbies Traynor group and enhance its existing strong network of offices across London and the South-East.

Additional contingent consideration of up to £4m will become payable subject to the achievement of financial targets for the business in the five-year period directly following completion.

Begbies said ALJ had a strong recent record of financial performance and said it had reported annual revenues of £3.1m and pre-tax profits of £900,000 in the year ended 30th June.

Begbies Traynor Chairman Ric Traynor said “I am very pleased to welcome the Alexander Lawson Jacobs team to the group. They are an experienced team with a strong recent growth record, which will enhance our existing strong network of offices across London and the South-East.”

“This acquisition is in line with our strategy to increase the scale and market share of our market-leading insolvency practice.”