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K3 Capital to buy Knight Corporate Finance in £24.9 million deal

K3 Capital Group has announced it is acquiring Knight Corporate Finance Group Limited and Knight R&D Limited in a deal worth up to £24.9 million, subject to meeting certain earn out targets. The acquisitions form part of K3’s strategy to acquire complementary and value accretive businesses to build out its existing SME service lines.

Knight Corporate Finance was founded in 2008 by Adam Zoldan and Paul Billingham has completed over 125 transactions. Sister company Knight R&D was established in 2016 to support companies on R&D tax incentive claims, with Knight Transaction Services launched last month.

John Rigby, CEO of K3 (pictured), explained, “Knight has a great team and a unique approach to the market with a particular vertical market expertise. There is cross-over with existing K3 business, but we see the Knight brand as highly accretive and it will continue to be led by Adam, Paul and Rupert to ensure it retains its unique client proposition both in corporate finance and R&D.”

Paul Billingham, co-founder of Knight Corporate Finance, said, “When we were approached by K3 about the potential transaction and met with John Rigby and Andy Melbourne [the chief financial officer of K3], it was immediately apparent that we were dealing with like-minded entrepreneurs who shared many of our business values.

“This is a best of both worlds deal that retains Knight’s existing management team, whose core values will remain steadfast, whilst allowing us to benefit from the resources and infrastructure of a larger organisation.”

Adam Zoldan, co-founder of Knight Corporate Finance, added, “This deal is an incredibly exciting opportunity to accelerate our growth plans and reward our team for their hard work and loyalty. For our clients, it is strictly business as usual. Paul, Rupert and I have committed to continue leading the business, and we are looking forward to driving Knight forward as part of K3.”

K3 Capital Group said it will pay up to £8.6 million for Knight Corporate Finance, including an initial consideration of £3.3 million in cash and shares, and up to £16.3 million for Knight R&D, including an initial payment of £9.3 million in cash and shares.