Redde has agreed the acquisition of FMG, a provider of fleet management services, for a total consideration of £43.2m. There are a number of synergies which can be targeted in the enlarged group complementing independent revenue growth. We upgrade our EPS forecasts by 8% and 15% in FY16 and FY17 respectively. With an unchanged dividend policy, the yield returns to 6%+. A sustainable yield and potential for outperformance on delivery of revenue synergies are key attractions.
