K3 Capital Group acquires Quantuma in £42m deal

Professional services company K3 Capital Group has acquired Quantuma Advisory in a deal worth up to £42 million. Through the acquisition, Bolton-based K3 hopes to bolster its capabilities such as restructuring and corporate finance, as part of its broader aim of expanding its professional services businesses. The acquisition comes as demand for restructuring, insolvency and business advisory services increases rapidly due to the impact of COVID-19.

The deal involves an initial £26.95 million payment, via a combination of cash and shares, with an additional maximum combined earnout of £15 million and an additional 645,513 growth shares.

The acquisition is K3’s second in the space of six weeks, following its deal for randd UK in June. At the time, the company raised £30.5 million to fund that deal and future acquisitions.

Since its founding by Carl Jackson in Southampton in 2013, Quantuma has grown to become a business with turnover of £23 million, 250 staff across 17 UK locations, including Manchester, Bradford, Birmingham and Nottingham, and presences in Cyprus and Mauritius.

K3 chief executive John Rigby said: "We believe that Quantuma is an excellent fit for the group and will play a significant part in helping us achieve our strategic aim of building a wider group of growing and complementary professional services businesses.”

"In particular, we consider the corporate recovery and insolvency market to be a highly desirable market by virtue of its counter-cyclical nature.”

"Quantuma is a fast growing, professionally managed, and diversified corporate recovery business which has increased its turnover from £11 million to £23 million over the last three years and we believe that with the benefit of K3's marketing capabilities, the Quantuma business can be scaled significantly."

Quantuma Chief Executive Carl Jackson, who joins the K3 board as an executive director, says that the combined companies “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.”

“In addition to the merger being a strategically strong fit, we believe that 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."


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