Knights Group to acquire Surrey-based commercial law firm

Legal and professional services outfit Knights Group has agreed to acquire Surrey-based independent commercial law firm Mundays from its six existing equity partners for a total consideration of £5.3m.

Under the terms of the acquisition, Knights will acquire Mundays on a debt-free, cash-free basis for an initial consideration of £3.93m, made up of £2.68m in cash and 289,908 new ordinary shares, along with a deferred cash consideration of £1.37m to be paid in instalments over the two years.

The AIM-listed group will satisfy the cash consideration from existing facilities, with completion expected to take place on 16 April.

Knights highlighted that in its unaudited accounts for the year ending 31 July, Mundays reported revenues of £7.9m.

Chief executive David Beech said: "The acquisition of Mundays further builds our position in the South East, providing a strong platform from which to recruit talented lawyers that no longer wish to commute into London, as we continue to grow our national presence."

As of 1045 GMT, Knights shares were up 3.12% at 447.56p.