Knights Group Holdings (AIM:KGH) has agreed to acquire the commercial and private wealth service lines of Moore Barlow for total cash consideration of £27m.
The AIM-listed legal and professional services group, ranked among the UK's top 50 law firms by revenue, said the deal builds on recent expansion in the Thames Valley, Essex, Kent and Sussex.
Moore Barlow's Personal Injury, Clinical Negligence and Court of Protection divisions will be sold separately immediately before the transaction completes.
The remaining business, which represents around 70% of Moore Barlow's revenue, generated approximately £30m of turnover in the year to 30 April, alongside a 4% EBITDA margin on a corporatised basis.
Knights expects the acquired business to deliver an 18% profit-before-tax margin once synergies are realised, and anticipates the deal will be earnings enhancing in its first full year.
Of the £27m consideration, £18m is payable on completion, with the balance staggered across the following three anniversaries subject to conditions.
The cash will come from Knights' existing banking facilities, with covenant net debt to EBITDA expected at around 1.5 times by the end of the current financial year.
Moore Barlow, formed in 2020 through the merger of Moore Blatch and Barlow Robbins, operates from six sites including Richmond, Guildford, Woking, Southampton and Lymington.
Knights plans to combine the Woking and Guildford offices and exit Moore Barlow's City office, adding around 160 fee earners to its network.
"Moore Barlow is a strong cultural and operational fit with Knights," said chief executive David Beech.
Completion is expected on 1 November, subject to conditions.
News Intelligence what this means for the company
Knights Group is acquiring Moore Barlow's commercial and private wealth divisions—representing 70% of Moore Barlow's revenue and generating ~£30m turnover annually—for £27m cash, adding 160 fee earners across the South East and South Central markets. The deal targets an 18% profit-before-tax margin post-synergies and is expected to be earnings-accretive in year one, with Knights funding it from existing facilities and maintaining covenant net debt to EBITDA at ~1.5x by year-end.
The acquisition extends Knights' geographic footprint and adds scale in a region where it has been expanding, with management confident in synergy realization and near-term earnings accretion. However, the deal adds leverage at a time when the company is already managing a 1.5x net debt-to-EBITDA ratio, so execution on cost savings and integration will be critical to validate the margin uplift claim.
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