Mortgage Advice Bureau acquisition

Bondholder Mortgage Advice Bureau (MAB) has agreed to acquire 80 per cent of a Scotland-headquartered mortgage broker in a move which values the business at £20.6m.

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The Derby-headquartered company, which is listed on AIM, is to snap up the stake in First Mortgage Direct Ltd for an initial cash consideration of £16.5m.

In a statement MAB said: "The directors believe that the acquisition presents MAB with significant additional growth opportunities.

"The acquisition will enable MAB to further grow its adviser numbers and market share, in addition to its core growth plans, and will also add another highly respected and leading mortgage broker to the group.

Managing director Ben Thompson added: "This acquisition is central and complementary to our strategic objective to grow our market share of new mortgage lending."