MURGITROYD, the Alternative Investment Market-listed patent attorney and intellectual property consultant, has bought Glasgow-based rival Fitzpatricks for pounds-1.3m.
Glasgow-headquartered Murgitroyd said the purchase would enhance the scope of its existing patent and trademark practices while providing it with a number of "notable" corporate clients.
The company said it had agreed to buy the entire issued share capital of Fitzpatricks for a consideration of pounds-1.3m "in addition to approximately pounds-240,000 of net assets".
The purchase is expected to be earnings-enhancing immediately as a result of the economies of scale and synergies Murgitroyd will enjoy.
Founded in 1887, Fitzpatricks is one of the UK's longest-established patent and trademark specialists It was owned by members of the founding Fitzpatrick family until it was sold to a management buy-out team led by Alasdair Hume, former managing director, in 2000.
It made earnings before interest, tax and amortisation of pounds-32,000 on sales of pounds-3.9m in the year ended December 31, 2004.
Current net assets are estimated at pounds-240,000, compared with pounds-113,000 at December 2004. Three of Fitzpatricks directors, who are trademark or patent attorneys, will remain with the firm after completion, but Hume and two others will leave.
The deal comes weeks after Murgitroyd told investors it had entered into "non-binding heads of terms" with a company that could lead to an acquisition.
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