ASX-listed IPH Limited (IPH) has announced that its subsidiary, AJ Park has reached an agreement to acquire the New Zealand intellectual property firm Baldwins Intellectual Property (Baldwins).

The transaction is subject to a number of conditions including clearance of the proposed acquisition by the New Zealand Commerce Commission.

Established in 1896, Baldwins is a well-known New Zealand IP firm, with 4 partners. The firm is comprised of approximately 30 professional staff and around 70 headcount in total.  

The total purchase consideration for the acquisition is approximately NZ$7.9m (approximately AU$7.4m) including deferred consideration of NZ$0.4m (approximately AU$0.4m).

Initial purchase consideration is to be settled approximately 65% in cash and approximately 35% in new IPH shares. Deferred consideration is to be settled in cash.

The IPH shares issued as part of the consideration will be escrowed for 2 years.

Baldwins’ FY20 EBITDA after normalisation adjustments for partner salaries was approximately NZ$2m.