4th Nov 2019 12:48
(Alliance News) - Knights Group Holdings PLC on Monday said it has acquired Birmingham-based law firm Emms Gilmore Liberson for up to GBP4.7 million.
The legal and professional services firm said the payment will comprise of GBP1.4 million in cash and GBP1.7 million in 515,060 shares.
The stock was trading 0.6% higher in London on Monday at 325.00 pence a share, giving Knights a market capitalisation of GBP238.3 million. Following the admission of new shares, the company will have 73.8 million shares overall.
In addition, Knights said it will pay a deferred cash consideration of GBP1.7 million over two years, subject to conditions being met.
"As our fifth acquisition since listing in June 2018, we are delighted to build on our strong momentum with the new team providing us with an exciting platform from which to grow our share in this new market, through both lateral hires and bolt on acquisitions," said knights Chief Executive David Beech.
Knights explained that this acquisition will take it into a new market outside London and will accelerate its organic growth.
For the year ending March 31, Emms reported revenue of GBP4 million with a pretax profit margin of 15%. Following integration, including the delivery of cost synergies, Knights said it expects Emms to deliver a pretax profit margin of 20%.
By Evelina Grecenko; [email protected]
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