5th Mar 2020 12:12
(Alliance News) - Law firm Knights Group Holdings PLC is to raise GBP20 million to help fund further acquisitions, it said on Thursday.
Birmingham-based Knights Group is to place 4.8 million new shares at a price of 420 pence each with existing shareholders, raising GBP19.2 million net of costs. Shares were down 1.1% on Thursday at midday in London at 450.00p.
The proceeds will be used the fund the initial cash element worth GBP14.9 million in the takeovers of Leeds-based law firm Shulmans LLP and ASB Law LLP.
Knights is buying Shulmans for up to GBP20.1 million and ASB for up to GBP8.5 million.
Knights is paying GBP13.7 million upfront for Shulmans, of which GBP7.6 million is in cash and the rest in shares. The remaining GBP6.4 million will be paid on the first and second anniversaries of completion.
The company is buying ASB for GBP7.3 million in cash and the rest in shares, as well as a GBP400,000 deferred consideration.
Shulmans is a commercial law firm with a "well-established" presence in Yorkshire, Knights said, while ASB has a solid south-east presence.
"We are delighted to announce the acquisitions of Shulmans and ASB today, marking our entry into two new and important markets with the addition of these quality full service commercial law firms which are both recognised as Top 200 UK law firms by revenue," said Knights Chief Executive David Beech.
"With their ambitious teams and progressive approach to law, both firms are a strong cultural fit with Knights and provide an exciting platform for growth in their respective regions, in line with our strategy to build the leading legal and professional services business outside London."
These deals represent a continuation of a busy period of M&A for Knights. In February, it purchased an east Midlands-based law firm for up to GBP8.3 million, following other deals both in February and January.
By George Collard; [email protected]
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