Barlow Lyde & Gilbert and Clyde & Co have confirmed their merger deal following votes in favour of the move from both firms' partnerships, marking the largest-ever tie-up between two UK law firms.

The votes, which took place yesterday (28 July) at Clydes and today (29 July) at Barlows, saw the firms achieve the 80% and 75% of 'yes' votes respectively required for a deal to go through.

The merger is now expected to go live in November, with a name for the combined firm yet to be announced. Possible options under consideration are understood to include Clyde BLG & Co.

The tie-up creates an insurance specialist firm with combined revenues of more than £300m and around 280 partners.

Management positions have not yet been confirmed, although it is understood that Clydes senior partner Michael Payton (pictured above right) is likely to continue in his role at the combined firm, with Barlows senior partner Simon Konsta and chief executive David Jabbari (pictured above left) also handed senior management posts.

Under the terms of the deal, around 10 of Barlows' 97 partners are expected to be asked to leave, the majority of which will be equity partners. Those partners that do join the merged firm will be tied into an 18-month lock-in, during which they will have to pay a financial penalty should they decide to leave.

It is understood that Barlows partners above the halfway point of the firm's 10-point equity ladder will join the senior equity rank at the combined firm, while those with less than five points will enter at the junior equity level.

Payton said: "We are absolutely delighted with the outcome of the votes. There is huge enthusiasm and we look forward to the finalisation of the agreement and proceeding towards integration. We are all alive to the benefits that the combined firm will provide for our people and our clients, both in the insurance market and more broadly in the area of dispute resolution, both in the UK and across our international network."

Konsta added: "The result of the votes is an exciting and very positive step forward and reflects our belief in the potential of a combination between our two firms. We are pleased that the partners and our clients have responded positively so far. We look forward to working with Clyde & Co to establish a final agreement that meets both firms' strategies."

The firms have been in discussions since February this year, after the talks were first initiated by Payton and Barlows insurance dispute resolution partner Tim Taylor.

The merger is also timely given that Clydes is set to move into the St Botolph offices next door to Barlows' City base in August this year.

The confirmation comes after fellow insurance specialist firms Beachcroft and Davies Arnold Cooper voted through their merger to create DAC Beachcroft. The deal, which will go live on 1 November, will create a top 20 UK firm with more than 2,000 staff.

For more analysis, see Clyde & Gilbert – some initial thoughts and Double or quits – can a high-stakes bid create a global insurance giant?

Related: