NAHL Group PLC Acquires 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."