Knights Group agrees to acquire ERT Law

Knights said on Monday that the acquisition of ERT would build on its recently established presence in Birmingham, in line with the group's strategy to accelerate organic growth through carefully targeted acquisitions.

The AIM-listed group will acquire ERT from its three existing shareholders on a debt-free, cash-free basis for £1.8m - £900,000 of which will be payable in cash on completion, with the remaining £900,000 to be satisfied by the issue of 262,899 new ordinary shares.

Knights expect ERT to deliver a pre-tax profit margin in excess of 20% and be earnings enhancing in the first full year following the acquisition.

Chief executive David Beech said: "This is an exciting addition to our recently acquired operations in Birmingham, which is in line with our strategy to grow our share of key geographic markets outside London.

"Following the acquisition of EGL in November, today's update is testament to the momentum that Knights has built since its IPO in 2018 and its ability to attract high calibre businesses to the group."

As of 0930 GMT, Knights shares were up 0.88% at 342p.