The merger will help K3 to build a more diverse professional services group with enhanced capabilities in restructuring, corporate finance, tax advisory, forensic accounting and expert witness services. The deal sees a cash free, debt free initial consideration of £26.95m, in addition to maximum combined earn outs of £15m and an additional 645,513 growth shares.
Quantuma was set up in Southampton in 2013 by Carl Jackson. The firm has grown to become a £23m turnover business, with 250 staff across 17 UK locations. It also operates from three international offices in Cyprus and Mauritius.
Established in 1998, Bolton-based K3 is a multi-disciplinary professional services firm providing advisory services to SMEs. It quoted on AIM in 2017 and has seen its market capitalisation more than double in the last three years.
K3 recently acquired Derby-based R&D tax credit specialists RandD UK Ltd, in an £11.6m deal.
Carl Jackson, CEO at Quantuma, who also joins the K3 board as an executive director, said: “This is a significant milestone for both K3 and Quantuma. The combination of high quality businesses will provide an independent and compelling proposition in the mid-market.
“Demand for Quantuma’s services is already high and we anticipate this gathering pace as the government withdraws its Covid-related financial support. Becoming part of a listed plc will enable us to take on more significant mandates and provide greater access to larger corporates, both at home and overseas.
“This is very much business as usual for Quantuma. We will continue to develop our cross-border capabilities and are in advanced talks with a number of lateral hires to further strengthen our UK team.”
John Rigby, CEO at K3 Capital Group plc, said: “Our strategic vision is to develop a group of high performing businesses offering a range of complementary advisory services to SMEs and their stakeholders.
“Quantuma has developed a strong brand and has an impressive growth story. We’re delighted to be working alongside the firm’s like-minded and entrepreneurial senior leadership team. Together, our intention is to continue to invest in the group to enable us to drive organic growth by leveraging our client acquisition strategies, whilst also developing further revenue streams via a series of strategic acquisitions and lateral hires.”
Marie Wadeson, Quantuma
Notes to Editors
Quantuma is a leading business advisory firm which works with businesses at the key milestones, delivering bespoke solutions to help clients take advantage of opportunities and overcome a range of operational and financial challenges, enabling them to achieve their business objectives and ambitions. The business has 20 offices, including 17 in the UK, two international offices in Cyprus (Nicosia and Paphos) and one in Mauritius.
About K3 Capital
K3 Capital Group plc is a multi-disciplinary professional services firm providing advisory services to SMEs, with operations throughout the UK and overseas.
Services provided by KBS Corporate, KBS Corporate Finance, Knightsbridge and KBS Capital Markets:
· Mergers and Acquisitions (M&A) – Company sales, brokerage and corporate finance services to SME’s looking to achieve full or partial exit, advising on sales to private, trade, plc, private equity or overseas acquirors. Strategic advisory and valuations, financial due diligence and debt advisory.
Services provided by RandD UK Limited:
· Research & Development tax credit advisory: advising clients on Research and Development Tax Credit (RDTC) claims.
Services provided by Quantuma Advisory Limited:
· Restructuring advisory: formal insolvency appointments, informal restructuring advisory, personal insolvency and pension restructuring and insolvency advice.
· Financial advisory: comprehensive analysis of business performance through business toolkit, independent reviews, stakeholder management and turnaround and interim support.
· Creditor Services: creditor representation and liquidations.
· Forensic Accounting and Expert Witness: forensic investigations, intelligence and forensic accounting.
· Pensions advisory: corporate and trustee advisory, pension scheme restructuring advisory, covenant advisory and expert witness.
The Group’s medium-term strategy is to build a wider group of growing and complementary professional services businesses to provide SME's with high quality advice across specialist disciplines.
K3 Capital Group trades on the London Stock Exchange (AIM: K3C.L), having listed on 11 April 2017. Please visit www.k3capitalgroupplc.com for more information.