Parties
Company
IPH Limited
Company
Smart & Biggar
Company
Ridout & Maybee LLP
On August 17, 2023, IPH Limited announced its acquisition of Canadian IP firm Ridout & Maybee, integrating it with Smart & Biggar under the same brand. Established in 1893, Ridout & Maybee, a prominent Canadian IP firm with over 30 professionals in Toronto, Ottawa, and Burlington, filed more than 2,800 patents and 1,000 trademarks in 2022. This move aligns with IPH's growth strategy in secondary IP markets, following its acquisition of Smart & Biggar in October 2022.
The deal was valued at approximately C$65 million, consisting of C$46 million in cash and the issuance of 2.9 million new IPH shares worth C$20 million, escrowed for two years. Ridout & Maybee's adjusted EBITDA for the 12 months to December 2022 was C$8.2 million. The acquisition is expected to increase Smart & Biggar's underlying EBITDA by over 25%, with estimated cost savings of CAD 2 million over three years.
The transaction will be financed through IPH's debt facilities, cash reserves, and share issuance to vendors. Post-acquisition, IPH's leverage ratio will be 1.8x. Ridout & Maybee partners will join Smart & Biggar as Principals under four-year agreements, with eligible staff offered participation in IPH's employee incentive plan. The completion of the transaction is subject to standard conditions and can be terminated under certain circumstances.
Deal Type
Merger & AcquisitionIndustry
OtherTransaction
$ 65,000,000Deal Status
ClosedClosing Date
02 October 2023