Vantis acquires non-audit business of Rouse
Vantis, the AIM quoted accountancy and professional advisory group, has announced the acquisition of the non-audit business of Rouse, an established, 6 partner general practice partnership, based in Beaconsfield, UK.
All 6 partners of Rouse, plus 50 professional and support staff, will remain at their premises in Station Road, Beaconsfield. Rouse will provide Vantis with increased geographical coverage as part of the company’s development and expansion into the Thames Valley which started with the opening of the Wokingham office in 2004.
The unaudited partnership accounts of Rouse show that in the year ended 31 March 2005, Rouse generated profits attributable to the partners of £752,000 on turnover of approximately £3.6 million. These results include the audit business of Rouse, which is not being acquired by Vantis.
The directors of Vantis estimate that the acquired non-audit turnover amounts to approximately £3.2 million, from which Vantis expects a continuing pre-tax contribution on an annualised basis of approximately £910,000, after accounting for remuneration charges for the continuing partners of Rouse and taking some of the synergy savings arising from the acquisition.
Initial consideration will be £1.93 million to be satisfied in cash, shares and by the assumption of certain liabilities at completion. The initial consideration is payable on the 2 May 2006. The balance of the consideration is payable in cash and shares and will be settled over thirty nine months from completion. Consideration is dependent on turnover over that period.
Vantis expects the balance to be approximately £2.83 million. The maximum total consideration for the acquisition is capped at £5.56 million. The consideration includes the fixed assets of Rouse, but excludes work in progress, which is to be acquired at cost, but payable when Vantis receives the fees arising. The Rouse Business Centre, a suite of serviced offices let to third parties, and wholly owned by Rouse is also included within the acquisition.