Gateley Hamer’s earn out achieves less than half of maximum

The earn out from Gateley’s acquisition of surveyors Hamer Associates has fallen well short of the maximum payout.

Birmingham-based Hamer became the law firm’s second acquisition, after Gateley Capitus, when the deal was done in September 2016.

Gateley agreed to pay £1.0m up front, split equally between cash and shares, with the potential to double the sum based on its performance over two years.

However the firm has revealed that a total earn out consideration of £470,317 has been paid.

More positively, Gateley’s share price has risen significantly since the original deal was agreed – last night’s close of 175p was 50% higher than September 2016.

“We are pleased with the contribution made by Gateley Hamer,” said Michael Ward, chief executive of Gateley. “Increased cross-selling of services between traditional Gateley and Hamer clients and expansion of the specialist team, including establishing a new presence in our London office, positions Gateley Hamer well to generate increased revenue and profit in the current financial year.”