13th Sep 2019 12:06
(Alliance News) - Law firm Gateley Holdings PLC said Friday it has made an earn-out payment of GBP1.2 million in cash and shares to business psychologists Kiddy & Partners LLP.
The earn-out payment was made in respect of Kiddy's trading performance for the period from January 2018 to the end of April.
In July, Gateley announced that it would initially pay GBP850,000 for the acquisition of Kiddy, and then a further GBP2.2 million half in cash and half in shares - based on 4.5 times earnings before interest, taxes, depreciation and amortisation by the end of April 2021.
As part of the GBP1.2 million payout, 389,608 shares in Gateley have been issued. The remaining payment outstanding under the agreement stands at GBP364,676.
"We are delighted with the excellent performance of Kiddy since its acquisition in July of last year. Kiddy broadens and strengthens our people services offering within our employment, pensions and benefits group," said Chief Executive Officer Michael Ward.
"Results to date demonstrate clear opportunities for us to collaborate and deliver integrated advice and services to a broader set of large-scale employers across a wide range of industries. Kiddy has grown almost 37% ahead of original expectations, generating GBP3 million of fees since acquisition," Ward added.
Following the issue, Gateley now has 111.3 million shares issued overall.
Shares in Gateley were up 1.8% at 166.00 pence on Friday.
Related Shares:
Gateley Holdings