Mon, 10 Jul 2023 | BUSINESS SALE
Axiom Ince Limited has pounced to acquire the business and assets of defendant insurance firm Plexus Law out of administration. Administrators from Interpath Advisory were appointed to Plexus on July 7, immediately securing a sale to Axiom Ince.
The deal sees Axiom Ince take on 520 Plexus Law employees and 20 fixed share partners. Plexus is based in Leeds and comprises Plexus Legal LLP, which operates from offices in Leeds, London, Liverpool, Manchester, Chelmsford and Evesham and Plexus North, which is located in Edinburgh.
Plexus filed notice of its intention to appoint administrators in June, saying that it needed to find a buyer after a major investor worth around £5 million withdrew from the business. Several firms reportedly had an interest in acquiring the company, but Axiom quickly became the frontrunner.
The deal is the latest in a series of acquisitions made by Axiom, which was formed through the 2021 merger of Axiom Stone and DWFM Beckman. Earlier this year, the firm acquired London practice Wiseman Lee as it sought to expand its presence in the capital, before acquiring the business and certain assets of listed firm Ince Group in a pre-pack deal in May.
The Plexus group was incorporated in 2017, following the acquisition of certain work and assets from former legal firm Parabis law. According to the administrators, after the acquisition, a new management team detected “irregularities” relating to its historical financial performance.
A review subsequently found that contingent fees had been over-recognised in its accounts, which led to profits being overstated in 2020 and 2021. As a result of the investigation, the company’s 2021 statutory accounts were delayed and the previously-declared profits reversed.
Because of this, the company had a significant cash requirement, but saw its position further exacerbated by declining sales and the impact of the COVID-19 pandemic. Interpath Advisory were then engaged to examine the options available to the group, including a sale or new investment, before ultimately being appointed as its administrators.
Following the sale to Axiom, joint administrator and Interpath Managing Director James Clark said: “Undoubtedly, it has been a very difficult few years for Plexus, and so we’re pleased to have been able to conclude this transaction which not only secures the future of the business, but importantly secures 540 jobs without any need for redundancies.”
“Right from their initial expression of interest, Axiom were determined and committed to acquiring the practice, safeguarding jobs and importantly, helping to protect client interests.”
Read about the factors driving increased dealmaking in the UK legal sector in this recent insight, which features a more in-depth look at Axiom's pre-pack acquisition of Ince Group.
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