Fairpoint pays £3m more for acquired law firm’s peformance

THE success of law firm Simpson Millar following its acquisition by Lancashire-based consumer professional services specialist Fairpoint Group two years ago has triggered a further £3m payment for the business.

Payment on completion of the deal for Yorkshire-headquartered Simpson Millar in 2014 was for £7m.

In addition, there was provision for the payment of an earn-out of up to £6m based on the financial performance of Simpson Millar for two 12 month periods ending June 2015 and June 2016, with a maximum of £3m to be payable in each 12 month period.
 
Any additional consideration payable in the two 12 month periods was to be satisfied as to 50% by cash and as to 50% by shares.
 
Simpson Millar’s financial performance has exceeded the financial hurdles set for the second earn-out period ended June 30 2016 triggering the maximum earn-out for the period.

Accordingly, the group has paid £1.5m in cash and issued 1,061,647 earn-out shares at the previously agreed price of 141p per share, totalling almost £1.5m in value, to the vendors of Simpson Millar.
 
The vendors will be restricted from dealing in the 1,061,647 earn-out shares issued until after June 30 2017.