Excerpts from ASX Announcement:
The Board of AF Legal Group Ltd (ASX: AFL) (Company or AFL) is pleased to announce that it has today signed a binding heads of agreement to acquire 100% of the assets of Kordos Lawyers (Kordos Lawyers).
For the last 16 years, Berger Kordos has been a leading Melbourne Family Law Firm when they demerged from a National firm. Due to the retirement of the Berger Kordos partnership, Bill Kordos has continued the work and tradition of Berger Kordos under his firm Kordos Lawyers. The firm has offices in the Melbourne CBD and will merge 6 lawyers into the AFL business including 3 accredited specialists. With a focus in Family Law litigation advocacy the firm has established a reputation for quality legal advice. The team at Kordos Law has historically serviced over 150 clients each year and generated $2.5m in revenue per annum.
The consideration to be paid to the vendor of Kordos Lawyers for 100% of its assets includes upfront consideration of $125,000 in cash and $125,000 in shares. In addition, a total of $375,000 in deferred cash consideration and $375,000 in deferred share consideration will be paid in three annual instalments subject to minimum performance conditions at the completion of the financial periods ending 30 June 2022, 30 June 2023 and 30 June 2024. All cash consideration is expected to be funded from existing cash reserves. The targeted completion date for the transaction is 1 July 2021 and the transaction is expected to be materially earnings accretive for the Company.
The transaction is subject to the completion of due diligence by the Company and the Company obtaining all necessary approvals to give effect to the acquisition.
Recently AFL completed the previously announced acquisition of Watts MacCay