A BOLTON-headquartered company is raising funds to acquire a Derby-based rival.

K3 Capital Group plc, a leading business sales and brokerage firm based in Summerfield Road, Bolton, which operates across the UK, has outlined plans to raise over £30 million to acquire Randd.

Randd is a private company that advises people on Research and Development Tax Credit (RDTC) claims.

K3, through its trading subsidiaries, has received a number of adviser awards, most recently achieving the number one position in the 2019 Refinitiv Mid-Market M&A Review.

The company has also been listed on the London Stock Exchange since April 2017.

It is said that Randd will add a “highly complementary capability set to K3” allowing the Bolton-based company to “diversify into a synergistic market while providing both companies with cross-selling opportunities.”

An initial debt-free and cash-free consideration of £9.27 million, plus a maximum earn out of £7.5 million will be used for this purchase, with the remaining money being used for further acquisitions and to satisfy fees payable in relation to the fundraising and the acquisition.

John Rigby, K3’s CEO, commented: “I am delighted to announce the details of our first acquisition as we welcome Randd and their team to Group.

“In Randd we have identified a business with quality at its core and one which we believe will continue to flourish under the K3 banner as we build upon the strong foundations put in place by the shareholders, directors and wider team over a successful 12-year trading history.

“We look forward to continuing with our strategy to build a wider group of growing and complementary professional services businesses to provide UK SME’s with high-quality advice across specialist disciplines,” Mr Rigby added.