Colliers CRE has bought West End specialist agency Godfrey Vaughan.
The deal is for £7m in cash plus 1.6m new ordinary Colliers shares. Colliers has undertaken a rapid expansion in recent years, and is planning to continue to snap up businesses in the UK.
As revealed in Property Week last Friday, the company is in the early stages of talks with north west agency Sanderson Wetherall regarding a possible takeover.
Godfrey Vaughan employs 24 staff in total, all of whom will be offered employment contracts with Colliers. In the year to 31 March 2008, based on management accounts, Godfrey Vaughan generated revenues of £4.2 million. In the year to 31 March 2007, the business produced revenues of £4.1 million and profits before tax and partners' distributions of £1.8 million. Godfrey Vaughan's pro forma net assets as at 31 March 2007 were £1.0 million.
Following completion, the business will be rebranded as Colliers Godfrey Vaughan.
David Izett, chief executive of Colliers CRE, said: ‘This is a transformational deal in that it positions us overnight as one of the leading advisors in the West End Offices market – in investment, leasing and professional services. We are delighted to have filled the gap. I expect this deal to have an immediate and positive impact on the Group as a whole and to be earnings enhancing in the current financial year.’
Charles Godfrey, founding partner of Godfrey Vaughan, said: ‘Colliers CRE was our partner of choice and has the worldwide links necessary for us to take full advantage of the international playing field the West End offices' market has become. The creation of this new team will produce a highly compelling offer in the market.’