AIM listed law firm Gateley has bought tax adviser Capitus in a deal worth £2.72m, the firm’s first acquisition since its listing in June 2015.
The business will be renamed Gateley Capitus following the deal, which includes £1.59m in cash and 1.1m ordinary shares in the company.
According to Gateley, the acquisition of Capitus is part of a wider growth strategy for the firm which aims to selectively acquire businesses offering complementary professional and other specialist services to clients in Gateley’s target markets, providing it with an opportunity for cross selling to existing clients as well as broadening its appeal.
Gateley Capitus will operate as a wholly owned subsidiary and has offices in London, the Midlands, Northern Ireland and the Republic of Ireland, allowing it to serve the entire UK market, as well as providing its services to overseas projects.
Gateley chief executive Michael Ward said: ‘Capitus is a recognised and highly respected tax incentives advisory business and I am particularly excited by the additional expertise and cross referral opportunities the business will bring to the group.’
The co-founders of Capitus, Kevin Meyer and Aubrey Calderwood, said in a statement: ‘Our tie-up with Gateley, which we believe to be the first between an RICS regulated firm and a full service national law firm, gives us access to this expertise and provides us with many additional commercial opportunities.’
In February Gateley revealed its audited first-half results, posting a revenue increase of 11% from £26.7m to £29.6m. At the time, Ward said that the group had faced an improving but challenging period, but its flexible plc status had enabled it to grow and make strategic acquisitions.
The national firm made history last year, becoming the first UK law firm to carry out an initial public offering on 8 June. In its initial filling on 12 May 2015, Gateley said that moving from an LLP to a PLC would allow for faster expansion and diversification and give it a ‘first mover advantage’.