3rd Feb 2020 13:33
(Alliance News) - Knights Group Holdings PLC on Monday said it has acquired Manchester-based real estate law firm Croftons Solicitors LLP, in a deal worth GBP2.8 million.
The legal services provider said the acquisition will build on its strategy to accelerate organic growth through carefully-targeted acquisitions, strengthen existing officer, and add new geographies or complementary business services.
The acquisition will see Knight pay GBP1.4 million in cash, issue 163,086 of its shares worth GBP700,000, and pay a deferred cash consideration of up to GBP700,000 to buy the entire issued share capital of Crofton's corporate shareholders Simon Leighton Ltd, Arthur Chapman Ltd and Bob Agnew Ltd.
For its financial year ended, March 31, 2019 Croftons achieved revenue of around GBP2.8 million with a pretax profit margin of around 15%, Knights said. It added that following integration, it expects Croftons to deliver a pretax profit margin of around 20% in the first full financial year post-acquisition.
"We are pleased to announce the acquisition of Croftons. The team is well-regarded in the housing association sector, which typically brings recurring revenues from this highly defensive segment of the market. We previously set out a strong intent to expand in Manchester with our move to larger, modern premises in 2019 and look forward to welcoming Croftons to our growing team there," said Knights Chief Executive David Beech.
Shares in Birmingham-based Knights were down 0.2% at 438.00 pence each on Monday afternoon in London.
By Ife Taiwo; [email protected]
Copyright 2020 Alliance News Limited. All Rights Reserved.
Related Shares:
Knights Group .