13th Dec 2019 11:20
(Alliance News) - Law firm Gateley Holdings PLC said on Friday it has acquired staff training firm T-three Group for GBP3.4 million on a debt free, cash free normalized level of working capital basis.
The initial payment on completion of the deal will be GBP3.2 million, settled 50% in cash and 50% by the issuance of 944,855 Gateley shares at GBP1.658 per share.
Deferred payment of up to GBP900,000 is payable based on performance over financial years until September 30, 2021. The payment will also be settled 50% in cash and 50% in Gateley shares.
Cambourne, Cambridge-based T-three offers leadership development, behavioural change programmes and people and management development programmes. In the year ended September 30, T-three generated revenue of GBP4.2 million and earnings before interest, taxes, depreciation and amortisation of GBP700,000.
Gateley expects the acquisition to be immediately earnings enhancing.
"T-three complements Kiddy & Partners, which Gateley acquired in July 2018, and together these businesses create one of the largest specialist Human Capital consultancy businesses in the UK," Gateley said.
Michael Ward, Gateley chief executive officer, said: "T-three is another good example of the execution of our stated plan of being able to diversify our business and offer clients complementary business services that support the delivery of our legal services."
Gateley shares were up 3.1% in London at 178.84 pence each on Friday.
By Loreta Juodagalvyte; [email protected]
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