Gateley’s latest acquisition builds human capital expertise
Professional services group Gateley has rounded off 2019 with an acquisition which creates one of the largest specialist human capital consultancy businesses in the UK.
The Birmingham-headquartered firm has agreed a £4.1m deal for T-three Group. It will pay £3.17m now and up to £0.9m in deferred payments over the next two years, with the payout being made half in cash and half in shares.
The acquisition of T-three complements business psychologists Kiddy & Partners, which became part of Gateley in July 2018.
When Gateley floated on the stock market it 2015 it set out a growth strategy to acquire legal and non-legal businesses. It has previously bought Gateley Capitus, Gateley Hamer, GCL Solicitors and Persona Associates.
Gateley chief executive Michael Ward said: “We see huge potential from the acquisition in further expanding our Human Capital consultancy services, as T-three and Kiddy play to each other’s strengths and fit well alongside our legal teams.
“T-three is another good example of the execution of our stated plan of being able to diversify our business and offer clients complementary business services that support the delivery of our legal services.”
Ward added that Kiddy’s performance had exceeded its expectations and had already generated £3m of fees in 18 months.
T-three, which is based near Cambridge, has a client base which includes the BBC, NCP, Jaguar Land Rover, Samsung and Transport for London.
It employs 35 people and generated EBITDA – a measure of operational profitabilty – of £700,000 in the year to September.
It will continue to trade under its own name, and it will sit within Gateley’s employment and pensions group.
Jill Jenkinson, founder and chief executive of T-three, added: “We can see masses of potential for working with Kiddy. We are all experienced in helping individuals, teams and organisations make behavioural changes that will transform what they do and the cultures they work within.
“Alongside that, being part of a legal and professional services group that is focused on building one of the biggest and best Human Capital consultancies in the UK is something we are all excited about.”
