Expanding national firm Knights has dipped into the market again with the acquisition of a £7.2m firm.
The listed firm has confirmed the purchase of Oxfordshire practice BrookStreet des Roches in a deal which could eventually be worth £10m.
Knights will pay £7.5m upon completion on 1 April, comprising £5m in cash and the issue of £2.5m in shares to the sellers. Further cash payments will be made in three instalments up to 2022, subject to the sellers remaining with the firm until then.
Knights, which announced the aim of buying up to four firms a year, says it has funded the latest acquisition from existing cash reserves. The company’s share price rose 13% today following the acquisition announcement.
Founded in 1994, BrookStreet is a commercial firm with a specialism in real estate practice, and works with blue chip clients. Its 45 fee earners will be integrated into Knights’ existing Oxford office, taking the total fee earners in the city to more than 140.
For the financial year ending 31 March 2018, BrookStreet reported £7.2m revenue and profits distributable to members of £2.6m. Once fully integrated, as a result of what Knights referred to as ‘maximising synergy savings’ by merging offices, the expanded practice is expected to result in a 30% profit margin.
David Beech, chief executive of Knights, said: ‘We continue to enhance our geographical presence and expertise through the selective acquisition of high calibre firms.
‘With the acquisition of BrookStreet, we add to that momentum by welcoming one of the most highly regarded teams outside London, with a particular strength in real estate.’