Redde shares up on £43.2m fleet management group acquisition

20th Aug 2015 15:45

(ShareCast News) - Shares in accident management and legal services firm Redde rose after it said it had acquired a fleet accident specialist for about £43.2m.AIM listed Redde's shares were up by 3.38% to 149.90p at 1656 BST.Redde said as part of the deal to buy FMG Group, it would pay about £38.2m in cash upfront and issue shares to the value of £5m. Redde said it would also make a cash payment of £2.5m in respect of additional working capital balances on completion.Redde said it expected the acquisition of the FMG, which manages more than 250,000 vehicles, to be immediately earnings enhancing."We have worked together in the legal services arena for a number of years and this acquisition is a further step in strengthening Redde's proposition to its customers as we build on our recent successes," Redde chief executive Martin Ward said.The acquisition is subject to regulatory approvals and was expected to be completed in three months.