Acquisitive law firm Knights Group Holdings PLC (LON:KGH) has acquired Nottingham-based law firm Fraser Brown Solicitors for up to £8.2mln.

The AIM-listed legal and professional services business said £5.2mln will be paid in cash in two instalments while 680,000 new shares for the value of £3mln will be issued to the sellers.

Fraser Brown, which comprises 81 lawyers, is expected to grow pre-tax profit margin by 15% following integration.

In the year to 30 June, it posted £7.5mln revenue with a pre-tax profit margin of 10%.

In a separate announcement, Knights said it has agreed a new £40mln revolving credit facility with HSBC UK and Allied Irish Bank.

Set to expire in 2021, it replaces an existing £27mln facility.

Shares rose 5% to 465.72p on Friday at the opening bell.