LONDON (ShareCast) - (Sharecast News) - Legal and professional services company Gateley Holdings announced the acquisition of the Vinden Partnership on Friday, which it described as a specialist business offering corporate advisory, dispute resolution and consultancy to the built environment in the property and construction markets.
The AIM-traded firm said the acquisition was for a maximum consideration of ?6.75m, equating to a maximum enterprise value of ?5.15m.

It said Vinden, which would trade under the name Gateley Vinden following the acquisition, would strengthen its construction team, adding weight to its corporate advisory, dispute management and resolution expertise, and expand its portfolio of complementary services.

Gateley said Vinden is a well-established, profitable and cash-generative business.

In the year ended 31 August, Vinden's revenue was ?4.7m, generating profit before tax of ?0.8m.

Net assets at completion would not be less than ?2.1m, including net cash of approximately ?1.6m.

The Gateley board said it expected the acquisition to be immediately earnings enhancing.

Under the terms of the acquisition, Gateley said the initial payment on completion would be ?6.15m, settled 51.2% in cash and 48.8% by the issue of 1,602,564 ordinary shares at a price of 187.2p each.

The initial cash consideration would be funded from Gateley's existing banking facilities.

Deferred consideration of up to ?0.6m would be payable based on Gateley Vinden's financial performance in the year ending 31 August 2020.

Gateley said the deferred consideration would be settled 50% in cash and 50% in ordinary shares, valued at the average 10-day closing price of an ordinary share on the last practicable date as the deferred consideration falls due.

As part of the consideration, 1,602,564 ordinary shares were to be issued, with the company expecting that admission of those shares to AIM would take place at 0800 GMT on 12 March.

"I am pleased to welcome the Vinden team to Gateley," said chief executive officer Michael Ward.

"This is a team we know and trust.

"Their results driven, client centric and inclusive culture is fully aligned with Gateley's and we are confident that the integration process will be smooth and rapid."

Ward said bringing Vinden's skills in-house would "strengthen and expand" the company's corporate advisory, dispute management and resolution expertise.

"This is our ninth acquisition since we joined the AIM market in 2015.

"We continue to deliver on our strategy, building a strong and diversified group for the benefit of all our stakeholders - our people, our clients and our investors."

Peter Vinden, chief executive of the Vinden Partnership, added that it was a "really positive move" for his team, with the company "delighted" to join Gateley.

"Our two companies have worked together successfully for a number of years and have a shared ethos and approach.

"By combining our multi-talented teams, we have an enhanced offering for clients which will bring numerous benefits for all."

At 1037 GMT, shares in Gateley were down 3.36% at 187p.

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