The deal will enable the firm to offer increased services and secure its ambitious UK expansion plans.

Marlowe specialises in the regulatory compliance and safety of commercial premises.

LAW currently employs 70 members of staff, more than half of whom are employment lawyers, HR and Health & Safety professionals. The company has offices in Glasgow, Aberdeen, Edinburgh and Inverness.

In the 12 months to May 31, the LAW had a turnover of £5.5m and pre-tax profit of £1m.

The total enterprise value will comprise an initial cash consideration of £6.3m and a contingent consideration of approximately £4m over three years dependent on the achievement of profit targets.

The acquisition will be funded from the Group’s existing cash and debt facilities.

Magnus Swanson, LAW chairman, said: “The transaction provides us with a great opportunity to provide the best support for UK businesses as they meet the rising challenges of legal compliance. The certainty and transparency of the LAW fixed fee model means that everything from day-to-day staff engagement challenges through to employment tribunals and health and safety compliance is taken care of by us, so relieving pressure and freeing up time for busy employers to get on with running their successful businesses.”

Alex Dacre, chief executive of Marlowe PLC, added: “By acquiring Law at Work, a business which helps clients to mitigate their employee-related risk and assure their health & safety, we are strengthening Marlowe’s leading health and safety operation but more significantly advancing our capabilities to work with clients right across their essential compliance requirements.

“The business, which delivers subscription-based consultancy services, operates nationally in an attractive and underserved market in which we see significant growth opportunities. The acquisition is a major step in strengthening our position as the UK leader in regulated compliance services to commercial organisations of all shapes and sizes.”