LONDON, UK: K3 Capital Group announced the proposed acquisitions of Knight Corporate Finance Group Limited (KCFG) and Knight R&D Limited (KRD) for a total of £24.9 million.
K3 Capital also proposed a placing of new ordinary shares of 1 penny each in the capital of the company to raise gross proceeds of approximately £10 million through the issue of up to 2.941 million new ordinary shares at an issue price of 340 pence.
Knight Corporate Finance Group Limited (KCFG) is a specialist M&A advisory firm within the telecoms and tech sector, and Knight R&D Limited (KRD) is a specialist research and development (R&D) tax advisory firm servicing UK SMEs.
The acquisitions are in line with K3’s strategy to acquire complementary and value accretive businesses to build out its existing SME focussed service lines.
The proceeds of the placing will be used in part to fund the acquisitions and to satisfy an element of fees payable in relation to the placing and the acquisitions.
For the financial year ended 31 March 2021, KCFG generated revenue of £1.71 million and normalised EBITDA of £0.78 million, representing an EBITDA margin of c.45%. Total consideration of up to £8.6 million will be paid for KCFG by K3 Capital.
For the financial year ended 30 September 2020, KRD generated revenue of £3.16 million and EBITDA of £1.98 million representing an EBITDA margin of 63%. Total consideration of up to £16.3 million will be paid by K3 for KRD.
Directors of K3 believe that KCFG’s and KRD’s existing growth profile will benefit from cross referrals of Group clients, from the K3 Hub Database, as well as its marketing, research resources, data and expertise.
K3 Capital Group PLC share price
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6 Jul, 4:15 pm GMT+1 ·Disclaimer
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