Quantuma agrees merger with K3 Capital Group

The merger is aimed 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 will see 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.

Quantuma is a £23m turnover business, with 250 staff across 17 UK locations. It also operates from three international offices in Cyprus and Mauritius.

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

Carl Jackson, Quantuma chief executive, who also joins the K3 board as an executive director, said: “This is a significant milestone for both K3 and Quantuma. 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, K3 chief executive, said: “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.”