9th Oct 2018 09:34
LONDON (Alliance News) - Law firm Knights Group Holdings PLC said on Tuesday it will acquire Leicester law firm Spearing Waite LLP for GBP8.5 million in cash, shares and assumed debt.
Knights Group will pay an initial GBP5.3 million in cash and issue 97,028 Knights shares, worth about GBP200,000, to the Spearing Waite sellers. Should the acquisition be completed, Knights Group will have 72.1 million shares issued overall.
The stock was up 4.3% at 206.01 pence on Tuesday.
It also will make a deferred consideration of GBP800,000 in cash over a period of two years from 2019 to 2021, depending on if the sellers of Spearing Waite remain employed by Knights Group.
In addition, Knights will discharge up to GBP2.0 million of debt in Spearing Waite and grant stock awards equal to a maximum of GBP265,000, once the acquisition is completed.
The acquisition is expected to be materially earnings enhancing in the first full year, and will see Knights operate from 8 regional offices with 450 fee earners, increasing its presence in the East Midlands.
"We are delighted to be acquiring Spearing Waite, a firm which is culturally aligned with Knights and one we have known for some time. They have created a strong reputation in Leicester, as evidenced by their fantastic client portfolio, and I have no doubt that they will be a great addition to our business," said Chief Executive Officer David Beech.
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