Debt management specialist to buy Simpson Millar

Fairpoint Group, a financial services company specialising in debt management, is to buy national law firm Simpson Millar, it has been announced.

Slater & Gordon announced plans to buy Simpson Millar, along with Goodmans Law and the personal injury department of Taylor Vinters last May. The purchase of Goodmans and the Taylor Vinters deal were completed in the summer, while the purchase of Simpson Millar was postponed.

Fairpoint Group, based in Adlington, Lancashire, has its origins in Debt Free Direct, set up by Lathams Chartered Accountants in 1997.

According to its website, the company is now one of the leading providers of IVAs, with over 24,000 under management. Fairpoint acquired Moneyextra.com, a financial services comparison site, in 2010.

In a statement this morning, it described itself as an "AIM-quoted financial services business focussed on serving financially stressed customers".

Peter Watson (pictured), managing partner of Simpson Millar, said: "This is an investment in growth and a commitment to help us realise our existing long-term strategy.

"With the support of Fairpoint, we are able to expand significantly the numbers of products and services on offer from a portfolio that is already highly complementary.

"Meanwhile the firm can approach discussions with potential new partners armed with the added incentive that Simpson Millar is now part of a diversified financial and legal services business."

On completion of the deal with Fairpoint, which is subject to SRA approval, the law firm would continue to be run by its current management team, use its existing brands and operate as a business unit within the Fairpoint Group.

Chris Moat, chief executive of Fairpoint, said: "We are very pleased to be making this announcement today, having identified some time ago the diversification benefits offered by new rules allowing non-law firms to own legal services businesses via alternative business structure licences."

Moat added that Fairpoint had spent a "considerable amount of time finding the right partner".