Business
Acquisition of ERT Law Limited
Acquisition of ERT Law Limited.
About this update from Knights Group Holdings Plc
[{"type":"text","content":"\n \nRNS Number : 7599Y Knights Group Holdings PLC 06 January 2020 \n\n6 January 2020\nKnights Group Holdings plc\n(\"Knights\", the \"Company\" or the \"Group\")\nAcquisition of ERT Law Limited (\"ERT\")\nKnights boosts presence in Birmingham \nKnights Group Holdings plc, one of the UK's fastest growing legal and professional services businesses, today announces that it has agreed to acquire the entire issued share capital of ERT Law Limited (\"ERT\"), a commercial litigation law firm in Birmingham.\nAcquisition rationale and background\nThe acquisition of ERT builds on the Company's recently established presence in Birmingham, in line with the Group's strategy to accelerate its organic growth through carefully targeted acquisitions which are a strong cultural fit and strengthen existing offices, add new geographies or complementary business services. \nERT is a specialist in commercial litigation, servicing a number of blue-chip and FTSE listed companies. Its 24 fee earners will join the 32 fee earners in Birmingham following the acquisition of Emms Gilmore Liberson in November 2019, further strengthening the Company's high quality platform in the important and attractive West Midlands region. Following completion, the total number of fee earners across the Company will be 633.\nIn its unaudited accounts for the year ending 30 April 2019, ERT reported revenue of circa £2m with a corporatised PBT margin of circa 15%. Following integration, including the delivery of cost synergies, the Board expects ERT to deliver a PBT margin in excess of 20%. The acquisition will be earnings enhancing in the first financial year post acquisition.\nTerms of the acquisition\nUnder the terms of the acquisition, Knights will acquire ERT from its three existing shareholders (\"the Sellers\") on a debt free, cash free basis for a total consideration of £1.8m. The consideration comprises of £0.9m in cash which is payable on completion and the issue of £0.9m in 262,899 new ordinary shares in Knights (the \"Consideration Shares\") to the Sellers on completion which is expected to take place on 17 January 2020. The cash consideration will be satisfied from Knights' existing facilities. The cash consideration is subject to clawback dependant on certain conditions being met for two years post completion.\nApplication will be mad...