Gateley Holdings taking over Kiddy & Partners

The AIM-traded firm said the London based company partnered with “leading organisations” in the UK, and operated internationally in 25 cities across five continents.

It said Kiddy's client list spanned 80 of the FTSE Global 500 and 20 of the FTSE 100.

Kiddy would continue to trade under its existing name, with all staff relocating to Gateley's London office.

Gateley said the firm was a profitable and established business, revealing that in the year ended 31 December it generated pro forma revenues from continuing operations of £2.42m and operating profit of £0.21m.

The board added that it expected the acquisition to be immediately earnings-enhancing.

Under the terms of the acquisition, Gateley would acquire the business and assets of Kiddy & Partners LLP into a new 100% subsidiary.

The initial consideration payable on completion would be around £0.85m, settled 50% in cash and 50% by the issuance of 251,207 ordinary shares in Gateley.

Deferred consideration of up to approximately £2.15m was based on a multiple of 4.5x EBITDA in respect of the post-completion period, up to and including 30 April 2021.

Gateley said deferred consideration would also be settled 50% in cash and 50% in ordinary shares, with the maximum consideration payable not exceeding £3m.

The acquisition was being made on a net working capital neutral basis.

“This acquisition significantly broadens and strengthens our employment and people services offering,” said Gateley chief executive officer Michael Ward.

“There will be clear opportunities for us to collaborate and deliver integrated advice and services to a broader set of large-scale employers and across a wide range of industries.”

Ward sadi Kiddy represented Gateley’s first acquisition in the ‘human capital’ sector, which when put alongside global mobility and its ‘Entrust’ pension trustee operation, moved the business forward, offering employers a range of legal and consultancy services as their businesses required.

“This acquisition is in line with our stated plan and follows similar progress made in our real estate group where high-value, niche, chartered surveying services now sit-alongside and complement our core legal offering.”