RSM Tenon buys Vantis advisory arms for £7 million

National tax firm Vantis has sold its advisory arms to RSM Tenon for about £7 million as part of multiple sales of its UK accounting, tax, business recovery and advisory businesses.

Tenon will pay an initial £5.7 million in cash upon completion of the deal and a deferred consideration of up to £1.1 million in cash subject to the realisation of certain debtors purchased as part of the acquisition.

Tenon estimates the cost of integrating the acquired parts of Vantis will be £3.6 million with transaction costs an estimated £0.5 million, making the overall cost of the deal around £11 million.

Vantis has disposed of its key businesses in a series of deals, securing jobs for around 900 employees.

RSM Tenon has taken over Vantis Financial Management and the Business Advisory and Tax Services in London, Epsom and Leicester, as well as the Business Recovery Services (BRS) office in Marlow.

The purchase sees Tenon acquire around 300 staff and adds an estimated £27 million to the firm’s annual fee income.

RSM Tenon’s financial services arm will become one the 20 largest in the UK as a result of the deal which comes less than six months after Tenon’s merger with accountancy firm Bentley Jennison at the end of 2009.

BRS offices in London West End, Hornchurch, Birmingham, Manchester, Leicester, North East, St Albans and Worthing will form part of a new partnership comprising BRS partners called FRP Advisory.

Separate sales of the advisory and tax services offices in Loughton, St Albans, Sidcup, North East, Beaconsfield and London City have been agreed with partners in those locations.

The sales comes following a suspension of Vantis shares on 14 June amid concerns that it could not continue trading as a going concern due to high levels of debt.