Silverbeck Rymer agrees sale to plc for £19.3m
LIVERPOOL-based personal injury law firm Silverbeck Rymer is set to become one of the first law firms to be snapped up by a plc in a deal worth £19.31m.
Following the introduction of the Legal Services Act, the practice is set to be acquired by Quindell Portfolio – a Hampshire-based outsourcing and brand extension firm. It will pay £10.25m in cash to Silverbeck Rymer’s partners, with the remainder being paid through the ossue of 120.8m Quindell shares at a price of 7.5p per share.
Silverbeck Rymer’s two owners would also be subject to lock-in agreements which would prevent them from selling shares for periods ranging from 12 to 36 months.
Since the deal would be one of the first examples of a law firm being acquired by a plc, it needs the approval of the Solicitors’ Regulation Authority (SRA).
This could take several months, but Silverbeck Rymer’s partners have guaranteed Quindell exclusivity to complete on current terms – even if a higher offer is received – until the end of the year.
The two firms had already begun to work together last year to deliver a product for the insurance market and Silverbeck Rymer alread provides a significant volume of business to Quindell’s insurance outsourcing arm.
Silverbeck Rymer’s last filed accounts for the year to April 30, 2010, show a pre-tax profit of around £6m, while its latest management accounts state that it has assets of around £8m. Quindell has said it expects the deal to be “immediately and significantly earnings enhancing”.
Quindell chairman and chief executive, Rob Terry, said: “We are delighted to have reached an agreement, which represents a significant opportunity for everyone involved.
“Quindell will provide Silverbeck Rymer with the opportunity to grow through giving access to the Group’s industry contacts and technology expertise, whilst partners and shareholders can share in the benefits of participating as holders of Quindell’s equity.
“We look forward to continuing to work with the management at Silverbeck Rymer on their brand initiatives, and announcing in due course that we have concluded the formal agreement and obtained the necessary regulatory clearances to complete the acquisition at the earliest opportunity.”
Silverbeck Rymer chairman Jim Rymer said: “We see significant benefits in being part of the enlarged group. “Quindell has a rapidly growing presence in the insurance space and we firmly believe in its non-conflict approach to working with insurers.”
Quindell said that it had already been offered a number of oportunities to raise additional debt to facilitate its expansion.
It also said that the enlarged group is expected to generate sufficient facilities to meet its cash payment to Silverbeck Rymer’s partners.
