Knights Group acquires Manchester-based solicitors

Knights said the acquisition built upon its presence in the region, in line with its strategy of accelerating organic growth through "carefully targeted acquisitions" of a strong cultural fit and strengthening existing offices, adding new geographies or complimentary business services.

The AIM-listed group will acquire Croftons from its three existing shareholders on a debt-free, cash-free basis for a total consideration of up to £2.8m.

This comprises of £1.4m in cash, payable on completion, and the issue of £700,000 in new ordinary shares in Knights, along with a deferred cash consideration of up to £700,000 - to be paid in equal instalments on the first and second anniversary of completion.

The cash consideration will be satisfied from Knights' existing facilities.

Chief executive David Beech said: "The team is well regarded in the housing association sector, which typically brings recurring revenues from this highly defensive segment of the market.

"We previously set out a strong intent to expand in Manchester with our move to larger, modern premises in 2019 and look forward to welcoming Croftons to our growing team there."

As of 1300 GMT, Knights Group shares had inched back 0.26% to 437.84p.