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AFL completes acquisition of Kordos Lawyers
Listed national practice Australian Family Lawyers has completed its purchase of Melbourne-based family law firm Kordos Lawyers.
Jerome Doraisamy
In late June, Lawyers Weekly reported that the board of AF Legal Group (ASX: AFL) had signed a binding heads of agreement to acquire 100 per cent of the assets of Melbourne firm Kordos Lawyers.
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As noted at that time, the consideration to be paid to Kordos Lawyers would include upfront consideration of $125,000 in cash and $125,000 in shares in exchange for 100 per cent of its assets.
Further to this, “a total of $375,000 in deferred cash consideration and $375,000 in deferred share consideration will be paid in three annual instalments subject to minimum performance conditions at the completion of the financial periods ending 30 June 2022, 30 June 2023 and 30 June 2024” would be issued.
As of Monday, 5 July, AFL has paid $125,000 in cash and issued 209,697 shares, which represents the upfront consideration component.
The vendors of Kordos remain entitled to the aforementioned deferred cash and share considerations.
For each period, AFL said, “the material performance conditions include the retention of the vendor and key staff of Kordos Lawyers as employees of the company and the achievement of revenue targets in line with that achieved for 30 June 2021”.
Kordos Lawyers, which was founded 16 years ago following a demerger from a national firm, operated under the name Berger Kordos before changing to Kordos Lawyers. It services more than 150 clients a year and generates an annual revenue stream of $2.5 million.
In March of this year, AFL announced it was acquiring NSW-based family law firm Watts McCray. That acquisition was formalised in April, and completed in June.
