Scottish-founded, Goldman Sachs Alternatives-backed professional services firm AAB has agreed a business combination with South East England accountancy and business advisory practice Kreston Reeves, creating a group with annual revenues exceeding £200m (€232m) and a combined headcount of more than 1,800 staff across 23 locations in the UK and Ireland.

MSN reported, citing International Accounting Bulletin, that the deal, AAB's largest to date and its 18th since securing private equity investment in 2021, will position Kreston Reeves as AAB's regional hub in London and the South East, significantly extending the group's footprint in that market.

Kreston Reeves employs more than 550 people across seven offices in London, Kent, and Sussex, and generates over £50m (€58m) in annual revenue. The firm brings more than 200 years of heritage and specialist expertise across audit, accounting, tax, and advisory services.

AAB chief executive Emma Lancaster said: "This is a major milestone for AAB and a clear demonstration of our ambition to become the leading professional services firm serving the mid-market. Growing the group beyond £200m revenue is not about growth for growth's sake, it is about building a resilient, sustainable business that delivers long-term value for our clients, our people and our communities."

Richard Spofforth, managing partner at Kreston Reeves, said the deal will create new opportunities for our talented colleagues and provide clients with access to broader specialist expertise together with greater geographic reach.

Jose Barreto and Mihir Lal of Goldman Sachs Alternatives said the combination accelerates our vision for a national presence across the UK and Ireland, delivering essential scale in the South-East of England.

View the full merger announcement between AAB and Kreston Reeves.