LONDON (Alliance News) - Law firm Gateley Holdings PLC on Monday said it will acquire Kiddy & Partners LLP for a maximum consideration of GBP3.0 million.
Gateley will initially pay GBP850,000 for business psychologists Kiddy, half through the issue of 251,207 shares and half in cash.
A further GBP2.15 million may be paid - also half in cash and half in shares - based on 4.5 times
earnings before interest, taxation, depreciation, and amortization by April 30, 2021.
Kiddy will keep its name and become a subsidiary of Gateley. In 2017, Kiddy's revenue from continuing operations was GBP2.4 million and its operating profit was GBP213,000. It is expected to immediately enhance Gateley's earnings.
"This acquisition significantly broadens and strengthens our employment and people services offering...Kiddy represents our first acquisition in the human capital sector," said Gateley Chief Executive Officer Michael Ward.
Shares in Gateley were trading up 1.5% at 170.00 pence on Monday.
Gateley Holdings (GTLY)