Legal insurance firm Abbey Protection has agreed to buy Accountax, an accountancy, tax and employment law consultancy.
Abbey Protection, a supplier of legal and professional fee insurance products and services, has agreed to buy Accountax, an accountancy, tax and employment law consultancy.
An initial £4.4 million in cash is due on completion, which will be funded from the acquirer’s reserves. If Accountax meets agreed operating targets a further £1.85 million will be paid at the end of next year.
The board expects that the acquired company will contribute £2.5 million to the group’s revenues in 2009.
Abbey Protection chief executive Colin Davison said Accountax is a company he has long admired and the board intends to develop the business. “This deal represents an important milestone in our strategy of organic growth and the acquisition of complementary businesses, and we are confident of continued success for the enlarged group.”
Accountax’s vendors included director Dave Smith, who will remain with the company post-completion along with the senior management team. Smith claims that the deal will create the UK’s largest independent tax consultancy.
Abbey Protection products provide protection against costs incurred as a result of legal actions and HM Revenue & Customs investigations. It was founded in 1992 and has offices in London, Surrey and Rugby.
Milton Keynes-based Accountax has a team of 40 people operating through Accountax Consulting, Accountax UK and Accountax Law. Its services include advising businesses involved in IR35 and tax status disputes with HM Revenue & Customs, marketing for audit practices and promoting employment law franchises to accountants and other organisations.