Integrated Legal Holdings, a firm originating from Perth, has expanded its presence on the east coast after it reached a deal to acquire the legal business of Sydney-based mda lawyers.
Integrated Legal Holdings, a firm originating from Perth, has expanded its presence on the east coast after it reached a deal to acquire the legal business of Sydney-based mda lawyers.
The acquisition, which is subject to due diligence, comes some four months after Integrated acquired The Argyle Partnership Lawyers.
Integrated today said that it will offer a combination of cash and 1.33 million shares priced at 13.5 cents for the acquisition.
Shares in Integrated last traded unchanged at 14.5c at 15:55 AEDT.
The announcement is below:
The Directors of Integrated Legal Holdings Limited ("Integrated" or "the Company") are pleased to advise that the Company has reached agreement to acquire the legal business of mda lawyers ("mda") under tuck-in arrangements with the existing member firm Argyle Lawyers ("Argyle").
Mda is a prominent and highly regarded taxation law firm, specialising in taxation advice, taxation litigation, investigation and audit matters, and based in the Sydney CBD. The firm consists of Principal Mark Douglass and 5 lawyers, and has annual fee income of approximately $2.5m.
Mda will merge with existing member firm Argyle, with the merged firm having 7 Principals, approximately 40 staff and annual fee income of around $9m.
Under the merger plans, the mda business will be relocated and integrated into the nearby offices of Argyle. The merged business will operate under the Argyle brand and Mark Douglass will join Peter Bobbin and Andrew Ireland as senior management of the business, all of whom are committed to growing the merged business within the Integrated Group.
The Directors believe that mda brings a strong reputation and growth prospects, and as part of the Argyle business will assist in providing the Company a robust platform for further growth.
The transaction is consistent with Integrated's strategy of supporting the growth and expansion of a limited number of core member firms into major businesses with a competitive advantage through scope and scale of operation, as part of a listed group.
Transaction Details
The consideration for the transaction is a combination of cash and the issue of approximately 1.33m Integrated shares at 13.5 cents, and is subject to significant employment constraints and conditions. Part of the cash component will be deferred until FY10 and is subject to financial performance. The cash component of the purchase consideration will be funded from surplus cash reserves.
The transaction will effective from 15th March 2009.
The transaction is subject to completion of legal documentation.
Comments
The Directors believe that the effect of the transaction will be materially positive in terms of earnings per share, and will enhance the Company's growth prospects. The full revenue and profit impact of the acquisition will be achieved from the 2009/10 financial year.
Overall, the Directors are pleased with the progress and performance of the Company since public listing in August 2007, and consider the Company to have very strong future prospects.
The Directors are confident in the longer term outlook of the Company given the strength and underlying quality of the existing member firms, the significant potential for Australia-wide synergies and to grow organically, and by the opportunities for selective acquisition growth as part of the strategy of developing a national network of legal services businesses.
