Knights Acquires Exeter Firm for £2.1 Million, Restores Full Salaries
The national firm has continued its string of major expansions and returned lawyer salaries to pre-pandemic levels.
In an announcement to the London Stock Exchange on Tuesday, listed law firm Knights Group Holdings confirmed the acquisition of Exeter-based OTB Eveling in a deal worth £2.1 million.
“We are delighted to enter a sizable market for regional law today with the acquisition of OTB Eveling, an independent law firm with a strong cultural fit,” said Knights CEO David Beech. “The acquisition will provide us with a platform for future growth in the south west as we continue to build our position as the leading legal and professional services business outside of London.”
The purchase of the Exeter firm will involve an initial consideration of £1.4 million, comprised of £700,000 in cash and another £700,000 worth of shares in Knights. A deferred cash consideration of £700,000 will be staggered over two years, subject to certain conditions being met.
OTB Eveling was founded in 2012, and its acquisition will bring 17 new fee earners to the Knights group. The firm reported a turnover of £2.1 million with a profit margin of 16% for the year ending 30 April.
Knights has been resilient though the COVID-19 pandemic, seeing an increase of 13.2% in adjusted pre-tax profit – up to £6 million – in the half-year ending 31 October. Revenue increased 44% to £46 million on the back of three acquisitions completed in April, with OTB Eveling set to make four in 2020.
Full salaries resumed for Knights employees at the start of November, with trading having returned to near pre-COVID levels through the autumn. Beech projected confidence for activity at the firm in the months ahead.
“Our business is both well positioned and resilient, which gives us confidence in our ability to navigate the current economic turbulence,” he said.
Knights’ share value rose 2.6% to 436 pence after news of its latest acquisition broke.
