Slater & Gordon has hit its target of raising £456m from a share issue to fund its acquisition of Quindell plc’s professional services division (PSD).
Around 70% of the £637m initial purchase price is being funded through new shares, with the rest through bank debt.
Earlier this month the institutional offer was fully subscribed in just three days, raising £312m, with most existing investors buying into the issue. Retail shareholders have now subscribed for a further £144m of shares.
Subject to regulatory approvals, the deal is expected to complete next month.
Ken Fowlie, who on completion will become Slater & Gordon’s managing director of the UK and Europe, said: “The addition of the PSD will allow Slater & Gordon to further penetrate the highly fragmented £2.5bn UK personal injury market. It diversifies our sources of legal work while also increasing our touch points across the claims value chain.”
Earlier this month, Quindell’s shareholders approved the sale of the PSD, with further payments due as noise-induced hearing cases pay out.
Last week, Mr Fowlie sought to address concerns that Slater & Gordon may not fully understand what it is buying, saying: “In reaching the decision to acquire PSD, we have undertaken a bottom-up, fundamental assessment of PSD’s historical performance and future potential, leveraging a large team of internal experts and external advisers. As part of this we restated PSD’s financials using Slater & Gordon’s own evidence-based accounting policies.
“This work, together with our firm’s deep UK market experience and track record of successful acquisitions and integrations, underpins our confidence in the opportunity.”