Knights Group Expands Footprint with Acquisition of IBB Law
Why we think this is good
The acquisition of IBB Law is a strategic move by Knights Group that significantly increases its scale in the attractive South East market. The deal is expected to be immediately earnings enhancing, with IBB contributing £23m in revenue and an improved PBT margin of around 26% post-integration. The acquisition aligns well with Knights' existing services and culture, reducing execution risk. Overall, this appears to be a positive development for the company.
Key Points
- Knights acquires IBB Law LLP, a premium law firm in the South East
- IBB brings 140 fee earners and £23m in revenue
- Acquisition expected to be immediately earnings enhancing
- IBB to contribute PBT margin of circa 26% post-integration
- Expands Knights' scale in the attractive South East market
Summary
Knights Group Holdings plc has agreed to acquire IBB Law LLP, a premium service law firm based in the South East, for a total consideration of £30m. IBB brings a team of 140 fee earners and is expected to contribute £23m in revenue and a PBT margin of circa 26% post-integration. The acquisition is expected to be immediately earnings enhancing and aligns well with Knights' existing services and culture, reducing execution risk. The deal will allow IBB to leverage Knights' well-invested central infrastructure and accelerate growth.