Merger forms new practice
K3 acquires Glasgow adviser Quantuma in £42m deal
Ian Wright: milestone
Business advisory firm Quantuma, based in Glasgow, has completed a merger with AIM-quoted K3 Capital Group in a deal worth up to £42 million.
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.
In addition to an initial consideration of £26.95m there are maximum combined earn-outs of £15m and 645,513 in growth shares.
Quantuma, which was set up in Southampton in 2013 by Carl Jackson, expanded into Scotland in March this year following a merger with WRI Associates.
The firm is now 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 was admitted to the 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.
Quantuma CEO Carl Jackson will join the K3 board as an executive director.
Ian Wright, managing director at Quantuma, 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, 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.”