Greater Manchester-based K3 Capital has acquired business advisory firm Quantuma in a deal that could be worth over £40m.
The Bolton group paid an initial £26.95m for the London-based firm, in addition to maximum combined earn outs of £15m.
Set up in 2013, Quantuma employs 250 people across 17 UK locations, also operating offices in Cyprus and Mauritius, and its CEO Carl Jackson described Monday's announcement as a "significant milestone".
The deal follows K3's recent acquisition of Derby-based R&D tax credit specialists Randd UK Ltd in an £11.6m agreement.
K3 said the merger will help it build a more diverse professional services group with enhanced capabilities in restructuring, corporate finance, tax advisory, forensic accounting and expert witness services.
Mr Jackson, 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.”
Established in 1998, 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.
John Rigby, CEO at K3, 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.”
