Printer Friendly

Begbies Traynor wraps up sale of Red Flag business.


10 April 2012 a[euro]" British professional services consultancy Begbies Traynor Group plc (LON:BEG) on Tuesday announced it had finalised the divestment of a majority interest in credit risk database operator Red Flag A!ert LLP to Begbiesa[euro](tm) executive chairman Ric Traynor.

The Red Flag operations were sold to Traynor after third parties participating in a disposal process said that they could not yet view the particular business as a standalone acquisition opportunity. The sale reflects Begbiesa[euro](tm) intention to shed all of its loss-making non-core activities.

The chairman will pour some GBP1m (USD1.6m/EUR1.2m) into Red Flag to cover its current losses and its future development. In addition, this transaction could lead to a return of up to GBP1.5m of the groupa[euro](tm)s investment into this business to date, along with a future share of its trading proits.

Begbies will keep a minority stake in the partnership, it said.

The business that is part of the transaction is engaged in operating the Red Flag Alert credit risk database, which allows subscribers to target, assess and monitor the performance of clients, suppliers and rivals. Red Flag, with a staff of 24, booked an operating loss of GBP700,000 on a revenue of GBP200,000 for the fiscal year to 30 April 2011. Its net liabilities as at the same date amounted to GBP30,000. Begbies will continue to offer shared accommodation, IT, human resources (HR), marketing, administrative and accounting services to Red Flag. It will, however, keep full access to the database and joint marketing rights for the publication of quarterly statistics related to Red Flag Alert.

Canaccord Genuity Ltd acted as Begbiesa[euro](tm) advisor in this transaction.Country: UKSector: Business and Consumer Services, Banking/Financial ServicesTarget: Red Flag A!ert LLPBuyer: Ric TraynorVendor: Begbies Traynor Group plcType: DivestmentStatus: Closed

COPYRIGHT 2012 Normans Media Ltd.
No portion of this article can be reproduced without the express written permission from the copyright holder.
Copyright 2012 Gale, Cengage Learning. All rights reserved.

Article Details
Printer friendly Cite/link Email Feedback
Publication:M & A Navigator
Date:Apr 10, 2012
Previous Article:Amgen to take over privately-held KAI Pharmaceuticals.
Next Article:German Dekra acquires US safety consultancy BST.

Terms of use | Privacy policy | Copyright © 2019 Farlex, Inc. | Feedback | For webmasters