£6m earn out issued by professional services group
Following its acquisition of Smithers Purslow in April 2022, legal and professional services group Gateley has announced that a total earn out consideration of £6.15m has been paid to the vendors.
The deal has been completed with 38% paid in shares and the remaining 62% in cash.
Gateley Smithers Purslow, a chartered surveying practice, specialising in property insurance claims advisory services has integrated into the group’s property platform and has seen its headcount increase from 130 to 163 to meet demand.
The earn out consideration has been achieved as a result of Gateley Smithers Purslow realising not less than £4.5m of EBITDA over the two years to 30 September 2023.
The business has made a strong start under Gateley ownership resulting in earn out consideration of £3.79m due in cash and £2.36m in shares, based upon a 20-day average share price up to 24 October 2023 of £1.42.
Accordingly, 1,661,790 ordinary shares of 10p each in Gateley have been issued and admission of these shares to the London Stock Exchange is expected to occur at 8am on November 2.
Rod Waldie, Gateley Chief Executive Officer, said: “The GSP team is performing strongly and has further enhanced the range of services on our expansive Property Platform. As a highly regarded market leader in property insurance claims advisory, we see significant future opportunity to develop broader and deeper relationships with both existing and new clients in the insurance sector.
“I am delighted that GSP’s strong growth in both revenue and profit has resulted in the team achieving their earn-out consideration expectations.”
