Madrid / Photo: Shutterstock.com

Listed firm DWF is to acquire a Spanish law firm, as it continues its aggressive post-listing international expansion strategy. 

The firm is to purchase Rousaud Costas Duran (RCD), adding 40 new partners and 400 other staff operating across offices in Madrid, Barcelona and Valencia, according to a London Stock Exchange announcement. It will also provide DWF with access "an extensive network of connections in the Iberian Peninsula and Latin America", the statement added. 

RCD, with whom DWF previously had an exclusive association, reported revenues of €35.7 million ($39.7 million) for the year ended December 31, 2018.

The purchase is being made for about €50 million ($55.6 million) by way of a mix of shares and cash, with €7.4 million ($8.2 million) payable upon completion, the firm said in its statement, and up to €15.5 million ($17.2 million) "in deferred or contingent cash consideration". A further €27.6 million ($30.7 million) in newly issued DWF shares will be paid at completion. 

DWF, which listed in March of this year, also announced its financial results for the six months ending October 31, which were largely a confirmation of its projected results announced late last month.

The firm has grown its six-month revenue by 10% on the same period last year, from £133.4 million ($176 million) to £146.8 million ($193.7 million), with organic revenue growth – being revenue that is not directly linked to acquisitions – up 7%. 

The firm has also reduced its net debt from £59 million ($77.9 million) to £49.5 million ($65.3 million). However, profits before tax are down on last year's figures by £600,000 ($791,829) to £4.7 million ($6.2 million) 

In July, the firm announced that it had grown its revenue by 15% to £272.4 million ($359.5 million) for the year ended April 30, 2019.

Following the acquisition and revenue announcements this morning, the firm's share price dipped from 122p to 119p at 09.30am.