LONDON: The Law Debenture Corporation announced that its wholly-owned subsidiary Law Debenture Corporate Services Limited (LDCS) has entered into a binding agreement to acquire the company secretarial unit (CSS) of Konexo UK, a division of Eversheds Sutherland International LLP .
The Acquisition consists of the company secretarial business and assets. The total consideration for the Acquisition is £20 million, payable in cash.
Denis Jackson, CEO of Law Debenture, commented: “The acquisition of CSS is an exciting and value-creating opportunity for Law Debenture and is consistent with our clearly stated strategy. While IPS has a proven record of organic growth over recent years, we have remained alert to opportunities to accelerate our growth.
“We are proud to welcome the CSS team to Law Debenture. It is encouraging to see such a long client tenure, often more than 10 years, and we look forward to working with the team at Eversheds Sutherland to ensure a smooth transition of the business. The combination will bring together highly qualified and talented colleagues, allowing us to widen our existing expertise and capabilities to better service our clients.
“This is an important step in the continued execution of IPS’ strategy that is both strategically and financially compelling with attractive longer-term revenue synergy opportunities.”
Key transaction terms and financing
The purchase price for the Acquisition is £20m, to be financed from Law Debenture’s own resources.
Under the terms of the Acquisition agreement, Law Debenture has agreed to acquire the business on a cash and debt free basis. For the financial year ended 30 April 2020, CSS recorded revenues of £6.2m, estimated EBITDA of £2.2m. Completion of the Acquisition is expected by the end of January 2021.
Established for 15 years, CSS is a respected part of the Konexo business with UK and international sector expertise. The transferring team has 55 employees, with 15 based in London, 1 in Hong Kong and the remainder in Manchester. The business services a client base of 480 in more than 100 jurisdictions.
The Group expects to announce its full year results for the year to 31 December 2020 on Friday, 26th February 2021.
From its origins in 1889, Law Debenture has diversified to become a Group with a unique range of activities in the financial and professional services sectors.
As a global top 10 law practice, Eversheds Sutherland provides legal services to a global client base ranging from small and mid-sized businesses to the largest multinationals, acting for 66 of the FTSE 100, 73 of the Fortune 100 and 119 of the Fortune 200.
With more than 3,000 lawyers, Eversheds Sutherland operates in 68 offices in 32 jurisdictions across Africa, Asia, Europe, the Middle East and the United States. In addition, a network of more than 200 related law firms, including formalised alliances in Latin America, Asia Pacific and Africa, provide support around the globe.