The board of DWF Group Plc has confirmed market speculation that it is in negotiations with mid-market private equity firm Inflexion over a potential buyout.
The UK’s largest listed law firm, DWF, released a statement on the London Stock Exchange, detailing that DWF shareholders will be eligible to receive a total consideration of 100 pence per share, including a cash consideration of 97 pence per share and a three pence per share dividend for the six-month period ended 30 April 2023, reliant on the sale going through.
The deal would value DWF at an estimated £342m.
According to the LSE statement, DWF has confirmed to Inflexion that, should a firm offer be made, it would ‘be minded to unanimously recommend it to DWF shareholders’, subject to terms and conditions.
It added: ‘Discussions between DWF and Inflexion are ongoing and there can be no certainty that an offer will be made, even if the pre-conditions are satisfied or waived.’
Following the firm’s announcement concerning the possible acquisition by Inflexion, DWF shares jumped by 40% to 92 pence per share on the 10th July, the highest value reached since September 2022, when share prices reached 88.2 pence.
DWF listed in 2019 amid a record £95m IPO and a valuation of £366m, heralding it as the UK’s largest listed law firm.
Since then, its fortunes have been mixed amid fluctuating share prices. The firm’s highest valuation was recorded just before the pandemic at 141.4 pence per share in February 2020, with a drop to 90 pence per share in March 2020 and an all-time low in June 2020 of 53 pence per share.
DWF’s full-year results, released in July last year, recorded a 4% uptick in overall revenue from £401m to £416m. Adjusted profit before tax also increased by a pacey 21% from £34m to £41m.
Inflexion is a London-based private equity firm which, according to its website, has £8bn of assets under its management, including legal directory Chambers and Partners.
At the time of going to press, DWF’s share price was down 4% to 84 pence per share.
