AIM-listed Tenon Group is finalising the acquisition of two financial services companies this week for a combined £3.3 million.

AIM-listed Tenon Group is finalising the acquisition of two financial services companies this week for a combined £3.3 million.

The group has already completed the purchase of Scottish accountancy practice LWC and is expected to sign off on a deal for Preston-based taxation specialists Bowmans later this week.

Both companies were purchased for £2.5 million in cash, with Tenon providing a further £400,000 in shares to each firm.

It is understood that further funds will be payable up to two years after completion of the deal, depending on the financial performance of both companies.

On acquisition, the audit business of Bowmans and LWC will be transferred to Tenon Audit. Meanwhile, LWC’s employees have already moved into Tenon’s offices in Glasgow and Edinburgh.

After completion of the deal, Tenon will have 22 directors and 300 staff.

Bowmans’ turnover for the end of the last financial year was £2.4 million. LWC’s projected turnover to September is £1.5 million. Combined profit of both acquired companies was more than £1.2 million, according to their last accounts.

Tenon chief executive Andy Raynor said: “We will be able to accelerate growth in these areas by offering our comprehensive range of services alongside the high quality advice provided by our new colleagues.”

Tenon’s existing operations include financial services, outsourcing, corporate finance, corporate recovery, plus turnaround and specialist taxation advice.