IPH has reached an agreement to acquire intellectual property firm AJ Park by an acquisition of its patent attorney business, the benefit of its trademark and legal businesses and its associated Australian operations. AJ Park employs 205 people and operates from offices in Auckland, Wellington and Sydney. It will become the first New Zealand IP firm to join a publicly listed IP group. The total purchase consideration for the acquisition is approximately NZ$66.1 million (US$47.9 million) adjusted for net debt and working capital adjustments.

Completion of the acquisition remains subject to a number of conditions including completion of certain restructuring and contractual arrangements, the receipt of necessary consents and approvals from third parties, and no material adverse changes.

“We are delighted to have reached an agreement to acquire AJ Park and extend a warm welcome to the partners and staff,” said IPH managing director David Griffith. “The acquisition of AJ Park represents a further step in IPH’s strategy to expand its presence in secondary IP markets and, most importantly, supports IPH’s growth in Asia through extension of our Asian service offering to AJ Park’s local and international clients.”

Consideration is to be settled approximately 60 percent in cash and approximately 40 percent in new IPH shares. The IPH shares issued as part of the consideration will be escrowed for two years. Completion is expected by October 31.