Braveheart bulks up with acquisition of Neon Capital

AIM listed Braveheart Investment Group has acquired the entire issued share capital of Neon Capital Partners from NF Holdings.

Braveheart is paying £0.38m in cash for Neon Capital.

The acquisition is in line with the company's strategy of growing fee income by increasing funds under management.

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The sale is subject to a post-completion net working capital adjustment which will also be satisfied in cash following the preparation of completion accounts and which is expected to be about £0.3m.

Merchant Securities, which acts as a broker for Braveheart, currently has its recommendation for Braveheart under review.

As might be expected, it gave the acquisition the thumbs-up, saying it "improves revenue visibility for the company at an attractive price."

The market seemed to be of the same mind, however, with the shares edging up to 11.75p from 11.25p the night before.