LONDON: K3 Capital Group plc, a multi-disciplinary professional services firm providing advisory services to SMEs, has acquired the entire issued and to be issued share capital of Quantuma Advisory Limited, a holding company containing the assets of Quantuma LLP for an initial consideration of £26.95 million, a news release said. The acquisition is expected to be immediately earnings enhancing.

In addition to the acquisition, K3 Capital announced the appointments to the Board of Carl Jackson as Executive Director and Charlotte Stranner as Independent Non-Executive Director. In addition to these Board appointments, Martin Robinson has been appointed as Senior Independent Director and Stuart Lees as Non-Executive Director.

Quantuma is a UK-focused business advisory firm with overseas operations, specialising in corporate finance, financial advisory, pension advisory, forensic accounting and investigations, creditor services and restructuring and insolvency.

Quantuma has a strong and experienced management team. Quantuma has demonstrated significant fundamental growth in recent years, underpinned by 35% revenue and normalised EBITDA CAGR over the last 3 years.

Immediately following the acquisition of Quantuma the Group will be reorganised in a share for share exchange such that the following entities will all be simultaneously transferred by K3C to a new wholly and directly owned subsidiary of K3C, K3 Capital Group Holdings Limited, in consideration for the issuance of new ordinary shares by K3 Capital Group Holdings Limited to K3C:

(a)                 Knightsbridge Business Sales Limited;

(b)                 KBS Corporate Sales Limited;

(c)                 KBS Corporate Finance Limited;

(d)                 RANDD UK Limited; and

(e)                 Quantuma Advisory Limited.

John Rigby, K3’s CEO, commented, “We believe that Quantuma is an excellent fit for the Group and will play a significant part in helping us achieve our strategic aim of building a wider group of growing and complementary professional services businesses. In particular, we consider the corporate recovery and insolvency market to be a highly desirable market by virtue of its counter-cyclical nature. Quantuma is a fast growing, professionally managed, and diversified Corporate Recovery business which has increased its turnover from £11m to £23m over the last three years and we believe that with the benefit of K3’s marketing capabilities, the Quantuma business can be scaled significantly.

Following this acquisition and the recent acquisition of randd, K3 Capital Group has become a professional services group which incorporates the UK market leader in company sales and one of the most established R&D tax reclaim businesses in the UK, which together with Quantuma, creates a Group with diversified income streams, recurring revenues, multiple and complementary channels to market and significant cross selling opportunities.

We are pleased to welcome Carl Jackson, the Chief Executive Officer of Quantuma Advisory, to the Board and also further strengthen and balance the Non-Executive function of our Board through the appointment of Charlotte Stranner, Stuart Lees’ change to Non-Executive Director and appointment of Martin Robinson as Senior Independent Director.”

Carl Jackson, K3’s Executive Director and Chief Executive Officer of Quantuma, commented, “This is a significant milestone for both K3C and Quantuma. The combination of high-quality businesses will provide an independent and compelling proposition in the mid-market.

“Demand for Quantuma’s services is already high and we anticipate this gathering pace as the government withdraws its COVID-related financial support. In addition to the merger being a strategically strong fit, we believe that becoming part of a listed plc will enable us to take on more significant mandates and provide greater access to larger corporates, both at home and overseas.”