National firm Knights has significantly expanded its reach into the south east with an acquisition deal worth £30m. The listed firm today announced the purchase of IBB Law and transfer of 140 fee earners, including 29 equity partners.
Knights will pay £21m upfront and a further £9m in three further instalments. Completion is expected to take place on 4 April.
IBB is the biggest single acquisition so far by Knights, bringing in a firm which reported annual revenue of £23m last year and operating from four locations in Uxbridge, Beaconsfield, Reading and Ascot. IBB's accounts show that, as of last April, it employed 222 people, while profit before members’ remuneration was up by 6.5% to £5.5m.
Knights has not specified whether any IBB offices will close or staff let go. The firm said IBB has a ‘very good fit’ with its existing services given its strength in corporate, real estate and private wealth. The only exception is IBB’s legal aid-funded crime business, which accounts for around 10% of revenues. Knights said ‘strategic options’ for this business will be reviewed as it is considered ‘non-core’.
The firm added that IBB offices complement its existing presence in the region, but post-completion it 'will explore potential opportunities to upgrade and consolidate space where appropriate'.
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The acquisition is expected to be immediately profitable, and Knights said it was attracted by proximity to areas of inward investment, major corporate clusters, affluent communities and existing offices in Oxford, Weybridge and Newbury. Profit margins for IBB are currently around 6% and Knights said it expects this to rise to 26% following the acquisition.
Knights chief executive David Beech said: ‘IBB’s premium service offerings in corporate, real estate and private wealth are an excellent fit, and their culture and operational model are very aligned to Knights. We are confident that the acquisition will provide a strong platform for organic growth in the region.’
The firm has now acquired around 20 firms across England and Wales since it listed on the alternative investment market in 2018.
Shares in Knights Group Holdings rose almost 3% to 140p following the IBB announcement, their highest price since last July.
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