Lago, a Yorkshire based debt recovery firm, has been purchased by Winterhill Group, as its first step towards plans of expansion and floating of shares on the London Stock Exchange.

Winterhill, a firm which provides asset valuation and debt recovery services, is looking to list on the AIM in the near future.

As shared by the Lancashire based company, it is planning on raising nearly 6 Million Pounds through a placing to purchase Largo, as well as provide the working required working capital for future acquisitions. The firm believes that the takeover will allow it to provide a one-stop-store for "insolvency practitioners, financial institutions and asset-based lenders".

"The acquisition of Largo marks a significant step in the group's aim to provide a single source of asset valuation, recovery, restructuring and realization services. We look forward to working with the Largo team as we aim to continue its impressive growth record", said Neil Duckworth, co-founder of Winterhill Asset.

After the acquisition of Largo is complete, Neil Duckworth would be the new merged group's Chief Executive, and Paul Snook, the founder of Largo, would be appointed as the Executive Director of Winterhill.