Listed international firm DWF has agreed a deal worth £27.7m to buy a litigation firm in Canada. The Vancouver-based Whitelaw Twining Law Corporation will become part of the DWF group and is expected to give the firm greater scale and an enhanced platform in North America.

DWF will pay a total of £16.9m in shares and cash and will put forward £10.8m to clear Whitelaw Twining’s existing debts.

An initial consideration of around £11.5m in newly issued DWF shares will be paid in January 2023, with a further £2.9m cash payment in February. Contingent shares with a value of up to £2m may be paid provided certain 2022 calendar year financial targets and criteria are met.

According to an announcement this morning, the acquisition is expected to be earnings enhancing within the first full year. Whitelaw Twining, which employs more than 200 people in Vancouver and Calgary, generated £20m revenue in 2021 and recorded £3m pre-tax profit. Its gross assets at the end of last year were around £12.6m.

Sir Nigel Knowles, group chief executive at DWF, said: ‘Whitelaw Twining is one of the country’s top legal businesses and represents a high quality opportunity for our clients. We have worked hard to ensure DWF is in a strong position so we can confidently make these key international acquisitions, enabling us to make further progress against our strategy to be the preeminent global provider of integrated legal and business services.’

Daniel Shugarman, country managing partner of the Canadian firm, added: ‘Over 40 years, Whitelaw Twining has gone from a three-person practice in Vancouver to a diverse, full-service litigation law firm serving clients in 17 languages. This is the next step forward for our business, further strengthening our position in Canada and creating opportunities for our colleagues to support clients globally.’

The completion of the acquisition is subject to the satisfaction of pre-conditions, which are expected to be met by the end of the year. Following this, applications will be made to the Financial Conduct Authority and London Stock Exchange to approve the transfer of shares.

DWF Group shares edged up 1.45% to 70p following the announcement. Last week they dipped to their lowest value since October 2020.