Executives leading an acquisition by listed firm Gordon Dadds say the deal can help to create a new legal powerhouse in Cardiff. The PLC announced today it has completed the purchase of city centre firm Thomas Simon Limited for £1.875m in cash, to be paid in instalments over the next 20 months.
The sellers will also receive an amount relating to receipts from work in progress and other net tangible assets, having warranted that fee income will not be less than £12.5m over the next five years. Any shortfall in income will reduce the sums paid by Gordon Dadds.
The acquisition is the latest in a series of deals kick-started by the group’s decision to float on the London Stock Exchange last August. As part of this arrangement, Thomas Simon’s business and support functions will be merged with Gordon Dadds’ existing Cardiff business, trading under the Gordon Dadds name.
Cardiff is the back-office hub for the group but a front office was established five years ago targeted at property, family and private client work, and this acquisition is expected to help that service expand.
Adrian Biles, chief executive of Gordon Dadds, said: 'We have been looking to expand our Cardiff front office operation so as to become a significant player in the Cardiff community and we are delighted to have been able to merge our Caridff office with Thomas Simon’s.
‘We shall be focusing over the coming months on realising the benefits of these acquisitions and, in particular, on driving the cross-selling activity which grows the revenue and profitability of the existing and acquired businesses.’
Thomas Simon specialises in property (predominantly commercial), corporate, dispute resolution, private client and family. For the year ending 31 July 2016, the firm reported unaudited profit before tax of £430,000 on fee income of £2.09m.
Gordon Dadds, which has earmarked around £20m for buying up legal businesses, moved further up to M4 corridor last month when it acquired Bristol firm Metcalfes Solicitors. It had already purchased London and Oxford based White & Black Limited for almost £3m and corporate tax advisory business CWE Energy for an eventual £3.7m.
Gordon Dadds share price rose 1.2% in the first two hours after the latest news was announced.