Yorkshire business advisory firm completes £26.95m merger

A Yorkshire business advisory firm has announced the completion of its merger with a professional services company.

Bradford based business advisory firm Quantuma has completed a merger with AIM-listed K3 Capital Group, for an initial consideration of £26.95m, to create an independent global advisory practice.

The deal sees a cash free, debt free initial consideration of £26.95m, in addition to maximum combined earn outs of £15m and an additional 645,513 growth shares.

Rehan Ahmed, managing director at Quantuma, commented: “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 plc, added: “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.”