TIDMKGH
RNS Number : 9415S
Knights Group Holdings PLC
22 March 2021
Knights Group Holdings plc
("Knights", the "Company" or the "Group")
Acquisition of Mundays LLP
Knights strengthens South East presence with acquisition of
independent law firm
Knights, the UK's fastest growing legal and professional
services business (1) , today announces that it has agreed to
acquire Mundays LLP ("Mundays"), an independent commercial law firm
based in Surrey.
Acquisition rationale and background
The acquisition of Mundays strengthens Knights' presence in the
South East, in line with the Group's strategy to accelerate its
organic growth through carefully targeted acquisitions which are a
strong cultural fit.
Established over sixty years ago in Weybridge, Mundays is a
full-service independent law firm with a strong corporate, real
estate and private client offering. The acquisition sees 34 fee
earners joining Knights, increasing the Group's presence in the
South East region which it entered in March 2020.
In its unaudited accounts for the year ending 31 July 2020,
Mundays reported revenue of GBP7.9m and it is budgeting revenue of
GBP6.9m in the year to 31 July 2021, with a corporatised PBT margin
of c.6% in both years. Following full integration and realisation
of all synergies, the Board expects Mundays to contribute a PBT
margin of circa 18% which, combined with a typical level of revenue
churn, means the acquisition is expected to be immediately earnings
enhancing.
Terms of the acquisition
Under the terms of the acquisition, Knights will acquire Mundays
from its six existing equity partners ("the Sellers") on a debt
free, cash free basis for a total consideration of GBP5.3m, subject
to working capital adjustments at the time of completion. This
comprises an initial consideration of GBP3.93m, made up of GBP2.68m
in cash and GBP1.25m in 289,908 new ordinary shares in Knights (the
"Consideration Shares"), along with deferred cash consideration of
GBP1.375m to be paid in instalments of GBP0.75m and GBP0.625m over
the two years respectively following completion. The cash
consideration will be satisfied from Knights' existing facilities.
Completion is expected to take place on 16 April 2021.
Commenting on the acquisition, David Beech, CEO of Knights,
said:
"We are pleased to announce the acquisition of Mundays, a
well-regarded full-service independent law firm. Having met a
considerable number of their team, we can see that Mundays will
have a strong cultural fit with Knights. It brings a high-quality
team of lawyers, for whom Knights offers broader opportunities
within a larger, more diversified business.
"The acquisition of Mundays further builds our position in the
South East, providing a strong platform from which to recruit
talented lawyers that no longer wish to commute into London, as we
continue to grow our national presence."
Neale Andrews, Managing Partner, commented:
"We are delighted to join Knights, who's reputation for high
quality service combined with a modern approach to legal services
resonates well with our ambitious team and ethos. Having built a
strong and diverse client base over recent years, we look forward
to being part of a larger group with the resources to execute on
ambitious growth plans, offering exciting career opportunities to
our team."
- ENDS -
Notes
(1) Ranked number one for revenue growth over the last four
years in the recently published Lawyer's Top 100 Survey
Enquiries
Knights
David Beech, CEO via MHP Communications
-----------------------
Numis (Nominated Adviser and Broker)
Stuart Skinner, Kevin Cruickshank +44 20 7260 1000
-----------------------
MHP Communications (Media enquiries)
Andrew Jaques, Katie Hunt, Rachel Mann +44 20 3128 8100
knights@mhpc.com
-----------------------
Notes to Editors
Knights is a fast-growing, legal and professional services
business, ranked within the UK's top 100 largest law firms by
revenue. Knights was one of the first law firms in the UK to move
from the traditional partnership model to a corporate structure in
2012 and has since grown rapidly. Knights has specialists in all
key areas of corporate and commercial law so that it can offer
end-to-end support to businesses of all sizes and in all sectors.
It is focussed on key UK markets outside London and currently
operates from 14 offices located in Birmingham, Cheltenham,
Chester, Crawley, Exeter, Leeds, Leicester, Maidstone, Manchester,
Nottingham, Oxford, Stoke, Wilmslow and York.
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END
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