Asset finance specialist 1pm has bought Bradgate Business Finance in a deal worth up to £2.75m.
BBFL provides asset finance for clients buying business equipment in the construction, recycling and haulage sectors.
The purchase price includes an initial £2.2m payable in cash on completion with up to £550,000 in shares over the next three years subject to performance targets.
1pm chief executive Ian Smith said: “The board of 1pm is very pleased to be taking this second significant strategic step forward in the current financial year following the successful acquisition of Academy Leasing in August 2015.
“This transaction is further proof of the group’s intent to build a significant asset finance and business loans group through a combination of strong organic growth and carefully selected acquisitions. The acquisition of BBFL adds the hard assets category, new SME business sectors and valuable management experience to our existing asset finance offering.”
Richard Arnold, managing director of BBFL, added: “We are delighted to have this opportunity to take Bradgate Business Finance to the next stage in its development.
“This transaction will enable the business to grow significantly as part of the 1pm plc group, allowing us to join forces with 1pm and Academy to create a strong combined business, whilst continuing to build on the successful foundations we have laid within our own particular sectors of expertise.”
Following the deal, BBFL will continue to operate as a standalone business within the group, managed by its existing team.