AUSTRALIA'S first ASX-listed law firm, Slater & Gordon, has announced the acquisition of another law firm.
The firm will acquire Queensland personal injury litigation firm Trilby Misso for $57 million.
The transaction will be equity funded through a fully underwritten placement and a non-underwritten SPP totally $40 million.
The acquisition of Trilby Misso will be a boost to Slater & Gordon’s strategic goal of leading the Australian personal injuries litigation market, the firm said last week.
The acquisition will be funded by a combination of cash, equity and deferred consideration and is expected to be in the order of 9 per cent annualised earnings per share accretive in FY11.
Slater & Gordon managing director Andrew Grech described Trilby Misso as the perfect vehicle to advance the company’s long held ambition to grow its personal injury market share in Queensland.
“Trilby Misso delivers growth that would have taken us a number of years and a heavy investment to achieve organically,” he said.
“It also gives us a fantastic revenue base and highly skilled and experienced practitioners.”
Trilby Misso employs 150 people across its five offices in south east Queensland. It also operates an extensive referral network across the state. 53 per cent of the practice is in motor vehicle accident claims and 40% is in workers compensation.
The Trilby Misso business will continue to operate as a stand alone business under the Trilby Misso name after the acquisition.
“With two such powerful brand names, it makes sense to keep both going and there is certainly a place for both in the marketplace,” Grech said.
The vendors of Trilby Misso, who will not be transferring to Slater & Gordon, have not played any active role in operations for some time.
They have however developed a highly qualified and experienced management team which will continue to run the business post acquisition.
Slater & Gordon noted that senior staff are shareholders in Trilby Misso and will receive over 95 per cent of their consideration as equity in Slater & Gordon, subject to a reducing escrow over three years.
Austock Corporate Finance acted as corporate and financial advisor to the Trilby Misso acquisition.