Quantuma in £26.95m merger

Business advisory firm Quantuma has agreed a £26.95m merger with AIM-listed K3 Capital Group, in a bid to create an independent global advisory practice

Set up in Southampton in 2013 by Carl Jackson, Quantuma has grown to become a £23m turnover business, with 250 staff across 17 UK locations. It also operates from three international offices in Cyprus and Mauritius. 

Bolton-based K3 was established in 1998 and 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.

K3 recently acquired Derby-based R&D tax credit specialists Randd UK Ltd, in an £11.6m deal.

The latest merger is designed to help K3 to build a more diverse professional services group with enhanced capabilities in restructuring, corporate finance, tax advisory, forensic accounting and expert witness services.

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.

Carl Jackson, CEO at Quantuma, 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.’

John Rigby, CEO at K3 Capital Group, said: ‘Quantuma has developed a strong brand and has an impressive growth story.

‘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.’

Average: 5 (2 votes)