Deal, subject to partner approval will establish a firm with $2 billion-plus income
According to John Malpas, editor of Global Legal Post, Anglo-Australian company Herbert Smith Freehills (HSF) and New York-based Kramer Levin have decided to combine in what the two sides call a “bold, strategic move.”
Approved by both sets of partners, the acquisition will result in a “fully-integrated” company with “a single global profit pool from day one,” the companies stated.
In terms of their worldwide coverage, the two companies are Terms of their worldwide coverage, the two companies are complimentary. Apart From the whole European and Asia Pacific area, HSF has special strength in the UK and Australia as well as a small New York office.
Smaller of the two companies, Kramer Levin ranks just outside the AmLaw 100 and has offices in Silicon Valley, New York, Washington DC, and Paris.
With income of more the With 25 locations scattered worldwide, it will have 2,700 lawyers including about 640 partners.
Senior partner Rebecca Maslen-Stannage and HSF chair said: “This is revolutionary. We have long been dedicated to broadening our US product line, and Kramer Levin is ideal long been dedicated to broadening our US product line, and Kramer Levin is ideal fit. For both companies starting from day one, the combo guarantees quick development.
Howard T. Spilko, Kramer Levin’s co-managing partner, described the transaction as a “one-of-a-kind opportunity,” adding, “The combination provides us with a significant competitive advantage by bolstering our destination practices with a deeper bench, broader geographic reach, and sector expertise, while also providing the opportunity to collaborate to achieve great outcomes for clients internationally.”
The rationale for the merger is similar to that of this year’s merger between Magic Circle UK firm Allen & Overy and Shearman & Sterling to form A&O Shearman, which went live in May, given its promise of providing HSF with a credible presence in the key US market and the relative size of its potential US partner.
Source: Global Legal Post