Legal and professional services provider Knights Group has agreed a £16.6m deal to acquire law firm Birkett Long.

Essex-based Birkett Long generated revenues of £14.7m in the year to 31 May 2024, and corporatised profit before tax (PBT) of £1m.

Th deal comprises an initial cash consideration of £10m, and deferred cash consideration of £6.6m, to be paid in equal instalments on each of the first, second and third anniversaries, subject to certain conditions being met. Birkett Long’s three locations in Colchester, Chelmsford and Basildon will also allow Knights to add scale in the South East of the UK.

Following the acquisition, Knights said it would expect the business to operate at a “low double digit” PBT margin. The acquisition is expected to be immediately earnings enhancing and will take Knights’ annualised revenue to over £200m.

Knights CEO, David Beech, said: “This deal significantly expands Knights’ presence in the South East, adding scale in areas immediately surrounding London, and provides an entry into wealth advisory, a complementary service which has been of interest to Knights for some time.

“We are confident that without the constraints of independent ownership and building on its growth in recent years, the acquisition will deliver further organic growth in the region.”

Managing Partner of Birkett Long, Martin Hopkins, added: “We are excited to be joining Knights following a period of growth and modernisation of our business in recent years. Being part of a business of scale will allow us to build on our track record by continuing to grow revenues across both the law firm and the IFA business, allowing us to provide a broader range of services to our regional clients along with even more career opportunities for our professionals.”

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