Acquisition of Fitzalan Partners

RNS Number : 1786F

NAHL Group PLC

18 February 2015

 



18 February 2015                                

NAHL Group PLC

("NAHL" or the "Group")

Acquisition of Fitzalan Partners

NAHL, the leading UK consumer marketing business focused on the Personal Injury market, operating under the National Accident Helpline brand, is pleased to announce the acquisition of Fitzalan Partners ("Fitzalan"). The Group is paying up to £4.3m for Fitzalan made up of an initial cash consideration of £3.0m and a further cash of up to £1.3m prior to 31 December 2015 dependent on certain conditions being met.

Based in London, Fitzalan, which was founded in 2011, is an online marketing specialist that uses innovative proprietary technology platforms to target home buyers and sellers in England and Wales and offers lead generation services to panel law firms and surveyors in the conveyancing sector.  As with the Personal Injury ("PI") market, law firms find it difficult to cost-effectively generate their own leads. Unlike other mainstream online lead generators Fitzalan carries out the full sales cycle on behalf of its panel law firms and provides these firms with confirmed instructions rather than partially qualified leads.

Fitzalan reported Profit before Taxation of £0.7m for the year to 31 July 2014.  The acquisition will be funded from existing cash resources and is expected to be immediately earnings enhancing for NAHL.

The Board of NAHL believes there is clear strategic rationale for the acquisition including:

·      Providing access to a new market within consumer legal services that broadens NAHL's portfolio

·      Fitzalan is a business model that the Group can add real value to as it is an early stage NAHL model for property law and supporting services

·      Core skill sets of digital marketing, consumer contact centre, panel management and product development are common to both businesses

·      The conveyancing market is highly fragmented and there exists significant potential to develop new sources of business, after investment, that would be expected to deliver bottom line growth in future years

Russell Atkinson, CEO of NAHL, commented:

"As we highlighted at the time of our IPO, strategic acquisitions are a key part of our growth strategy and we are delighted with the acquisition of Fitzalan.  The acquisition offers NAHL the opportunity to extend its reach into the conveyancing market and utilise its competitive advantage and skill set from the PI market to take advantage of the significant growth opportunities already identified.

Fitzalan has a strong operating model and is complementary to the core NAHL model.  We look forward to the contribution it will make to the wider Group and welcoming the team to NAHL."

For further information please call:

NAHL Group PLC	via FTI Consulting
Russell Atkinson (CEO)	Tel: [phone]
Steve Dolton (CFO)

Investec Bank plc (NOMAD & Broker)                                                  Tel: [phone]

Garry Levin

David Flin

James Ireland

David Anderson

FTI Consulting (Financial PR)	Tel: [phone]
Oliver Winters
Alex Beagley James Styles

Notes to Editors

NAHL Group

NAHL is a leading UK consumer marketing business focused on the UK personal injury market, advertising through its core brand - National Accident Helpline. Having been established in 1993, the Group's business has grown to become the largest outsourced marketing services provider to the personal injury market - a market which is valued at approximately £3 billion in fees generated mainly by law firms. NAHL's core business model is based on enquiry origination through direct response marketing, connecting claimants who have been injured in non-fault accidents with specialist law firms.

More information is available at www.nahlgroupplc.co.uk and www.national-accident-helpline.co.uk

 

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