Simpson Millar acquisition completes
DEBT management group Fairpoint has completed its acquisition of law firm Simpson Millar, which has a Birmingham operation.
Consideration for the acquisition is via an initial payment of £7m in cash and the issue of 1,415,529 new ordinary shares in the company to the selling shareholders of Simpson Millar.
A further £6m will be payable by Lancashire-based Fairpoint based on the financial performance of Simpson Millar for two 12 month periods ending June 2015 and June 2016.
Fairpoint said the deal is in line with its strategy of diversifying its income streams in adjacent markets such as legal services.
Chief executive Chris Moat said: “We are delighted to have completed the acquisition of Simpson Millar, which represents an important step in diversifying our income streams into legal services, in line with our stated strategy.
“Simpson Millar has already made significant progress in developing a powerful consumer offering, through the combination of strong legal skills with the innovative application of technology and legal processes.
“From this solid platform, we look forward to working together to further develop the group’s enlarged consumer-focused legal services business, accelerating the growth of the group in this market and delivering enhanced earnings.”
Simpson Millar provides consumer-focused legal services with its main lines including family, personal injury and clinical negligence. The 150-year-old firm has more than 250 employees based in 13 offices around the UK.
In the financial year ended June 30, 2013 Simpson Millar generated consolidated revenue of £16.9m.
