Sovereign acquires Murgitroyd in £62.8m deal

Sovereign is currently investing from its fifth-generation vehicle, which closed on £395m in 2014 and was 45% deployed as of December 2018.

The purchase price represents a valuation of 13.8x EBITDA for the financial year ending in May 2019. The cash consideration is equivalent to the unaffected closing price of 675 pence per share on 14 October 2019.

For the year ending in May 2019, the company reported £3.2m in profit from £48m in revenues, up from £43.9m in revenues the previous year. At the time of publication, Murgitroyd was trading at 635 pence per share.

Previous funding
The company secured £3m in funding in 2001 from a syndicate of investors prior to its admission to AIM on 30 November 2001. 3i, Friends Ivory & Sime Private Equity (Isis Capital) and Teather & Greenwood were the major institutional investors in the pre-IPO funding round. The capital was used to finance flotation expenses, working capital requirements and to accelerate the company's expansion in mainland Europe.

Company
Based in Glasgow, Murgitroyd offers patent and trademark attorney services. Founded in 1975, the company employs 300 staff.

Advisers
Equity – Spectrum Corporate Finance, Mark Farlow, James Mines, Sanj Benawra (corporate finance); Zeus Capital (corporate finance); DWF (legal).
Company – Deloitte (corporate finance); N+1 Singer (corporate finance).

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