- Gateley (GTLY), a leading national full-service commercial law firm, has announced the acquisition of Capitus, a UK specialist tax incentives advisory business.

Capitus, to be renamed Gateley Capitus, is the first acquisition that Gateley has made since its admission to AIM in June 2015. The amount payable for the acquisition comprises GBP1.59 million in cash, funded out of the Group's existing cash resources and the issue of 1,122,753 ordinary shares in Gateley, which, based on Gateley's closing share price on 8 April 2016, gives a total consideration of GBP2.72 million.

The acquisition is being made on a net working capital neutral basis.

The Company said that Capitus is a profitable and well established business. In the year ended 30 June 2015, Capitus had revenues of GBP1.38 million and generated an operating profit of GBP593,000.

The Board expects the acquisition to be immediately earnings enhancing.

Commenting on the acquisition, Kevin Meyer and Aubrey Calderwood, co-founders of Capitus said:

"This is a very exciting opportunity for Capitus. It provides us with an excellent platform for our continued growth and allows us to expand the range of services that we offer. We have, for some time, realised that having access to high quality legal expertise, particularly in the areas of real estate, construction and tax, would enhance the quality of services that we can offer our clients. Our tie up with Gateley, which we believe to be the first between an RICS regulated firm and a full service national law firm, gives us access to this expertise and provides us with many additional commercial opportunities. We are confident that this shall help us achieve our aim of becoming the number one fiscal incentives practice in the UK."

At 11:50am: [LON:GTLY] Gateley Hldgs Plc share price was +3p at 103.5p

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