Gordon Dadds is set to become London’s second listed law firm.
Work Group has announced an £18.8m reverse takeover deal to buy Gordon Dadds Group.
As part of the deal, Gordon Dadds will from early August be the second law firm listed on the Alternative Investment Market (Aim), after Gateley, which floated in 2015.
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Alongside the acquisition, Work Group yesterday announced it had also successfully raised £20m via a conditional placing of shares at 140p.
The enlarged group will take on the Gordon Dadds name and have a market capitalisation of £40m.
Work Group, which needs shareholder approval to complete the reverse takeover, described Gordon Dadds as an “acquisitive London based law firm with a twin track consolidation model to integrate mid-market law firms” under its name.
“There is a significant opportunity to create a substantial legal practice in the UK and the proven Gordon Dadds' business model is uniquely placed to be a major consolidator in this fragmented market,” said Gordon Dadds group chief executive Adrian Biles.
“The admission to Aim will provide the necessary capital for the group’s next phase of development and will also serve to enhance the group’s profile with clients and potential acquisition targets.”
Work Group executive chairman Simon Howard added: “The directors believe that the enlarged group will benefit from the significant opportunity presented by the UK legal services market.”