Aim-listed law firm Gateley has acquired tax specialist Capitus
Share price in Gateley rose today after the Aim-listed law firm snapped up Capitus, a tax incentives adviser.
Capitus, which Gateley has purchased for £2.7m in shares and cash in what is its first acquisition since listing on the exchange, raked in revenues of £1.4m and an operating profit of £593,000 for its year ended June 2015.
Gateley, which listed on Aim last June, believes that it will benefit from the repeat business already secured by its new purchase and also believes that it is buying in a high level of expertise which will help to open up new business opportunities.
"I am delighted to welcome Capitus to Gateley; its addition to the group is in line with the strategy we outlined at flotation last June, to make selective acquisitions which offer complementary specialist services," said Michael Ward, chief exeuctive of Gateley. "Capitus is a recognised and highly respected tax incentives advisory business and I am particularly excited by the additional expertise and cross referral opportunities the business will bring to the group."
Kevin Meyer and Aubrey Calderwood, co-founders of Capitus, added: "This is a very exciting opportunity for Capitus. It provides us with an excellent platform for our continued growth and allows us to expand the range of services that we offer."
Capitus will be renamed Gateley Capitus.
Shares in Gateley were trading up two per cent at 102.5p shortly before 3pm London time.
Last year, Gateley became the second law firm in the world and first law firm in London to float, following a change in the rules about ownership of legal firms. Slater & Gordon listed on the Australian Stock Exchange in 2007.