A 150-year-old Teesside company has been bought by a national law firm in a £ 5.2million deal.
Archers Law LLP, based in Stockton, was acquired by Knights, a rapidly growing legal and professional services firm with offices across the country.
Knights said the deal was in line with its strategy to “accelerate organic growth through carefully targeted acquisitions that correspond to a strong cultural fit.” The site will be the first Knights office in the Northeast.
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The acquisition will see Archers’ four financial partners share a possible £ 5.2million. This will consist of £ 2.1million in cash and £ 1.6million in shares in Knights, followed by payouts of £ 1.5million over the next three years. The deal is expected to be finalized on November 26.
Chris Todd, Partner at Archers, said: “After more than a century of growing to be one of Teesside’s premier law firms, we are delighted to join Knights, whose culture is closely linked to our own.
“We look forward to seizing significant growth opportunities in the North East as part of a larger group, which will allow us to offer more resources and capabilities to our clients in the region and beyond. “
In the unaudited accounts for the year ending March 31, Archers reported turnover of £ 4million. Knights said he expected the deal to improve profits immediately.
David Beech, CEO of Knights, said: “We are delighted to announce the acquisition of Archers, a leading law firm in Teesside, which further expands our presence in the North East, a region currently making the object of significant public and private investments.
“The acquisition allows us to build on the strong existing presence we have established in Yorkshire in recent years and provides a compelling platform for future organic growth in the North East as we consolidate our leadership position in services legal and professional outside London. “