Knights marches into Leicester with £6m purchase

AIM-listed legal outfit Knights Group has acquired the equity membership interests of Leicester's largest independent law firm, Spearing Waite, for £6m.

As part of its organic growth strategy, Knights absorbed the firm from Thomas Bower, Martin Stockdale Smith, Karen Herbert and Jonathan Wheeler on Tuesday, highlighting its highly diversified revenue base, entrepreneurial culture and the mix of both SME and blue-chip clients.

Spearing Waite generated revenue of £7.1m and profits distributable to members of £3.2m in its last trading year.

Knights will make an upfront cash consideration of £5.25m, funded from existing resources, and immediately issue 97,208 new shares to Waite's owners. A deferred consideration of £800,000 will also be due before October 2021.

Knights told investors the acquisition will see it move to eight regional offices, increasing its presence in the East Midlands alongside its existing Derby office, in line with its stated strategy.

David Beech, Knights' chief executive, said: "We are delighted to be acquiring Spearing Waite, a firm which is culturally aligned with Knights and one we have known for some time."

"They have created a strong reputation in Leicester, as evidenced by their fantastic client portfolio, and I have no doubt that they will be a great addition to our business."

As of 0910 BST, Knights shares had climbed 5.83% to 209p.