Merger between DWF and Scotland's Biggart Baillie to create firm with combined revenue of £120m

DWF's announcement that it is to merge with Scots firm Biggart Baillie has met with a mixed response from market rivals, as the fast-growing national firm continues its rapid recent expansion.

The tie-up, which will go live on 1 July, will create a firm with total revenues of around £120m. The deal is DWF's third merger in little more than six months, following combinations with Birmingham insurance boutique Buller Jeffries in April and Newcastle insurance firm Crutes late last year.

The tie-ups mean DWF will have almost doubled in revenue terms since 2008-09, following three consecutive years of double-digit growth.

However, some partners outside of the firm have questioned the value of adding a Scottish arm, given the tough local market conditions.

One senior Manchester partner at a rival firm commented: "We are struggling to see the advantage for either party. It's difficult to see the rationale or synergy for an insurance-focused firm like DWF acquiring a real estate stalwart like Biggart Baillie. This looks like yet another turnover bolt-on, and one has to question whether it will be sustainable in the long term."

The union hands DWF a presence in Edinburgh and Glasgow, including around 40 partners based across the two Scottish offices. Biggart, which boasts high-profile clients including the BBC, Marks & Spencer and Scottish Power, primarily focuses on real estate, retail and energy & infrastructure work.

The combined firm, which will be known as DWF Biggart Baillie in the Scottish market and DWF south of the border, will be led by DWF managing partner Andrew Leaitherland (pictured), who will hold the same role at the combined firm, and Biggart Baillie managing partner Alasdair Peacock, who will become Scotland executive partner.

No redundancies are expected to result from the tie-up, and despite this week's exit of disputes partner Alistair Drummond to DLA Piper in Edinburgh, few partner departures are expected. One Biggart partner said: "I absolutely trust Alasdair to have done a deal that will keep people happy and on board. There's great trust within the firm, and in him as a managing partner."

Chris Smylie, chief executive of Scots firm Maclay Murray & Spens, commented: "Biggart Baillie has always been a tier two leading firm. It might have suffered more than some others on the back of the commercial property downturn, but they retain high-quality lawyers and clients. They are a traditional, strong Scottish firm and remain well regarded."

However, one rival Scottish firm leader warned that Biggart's market standing had slipped in recent years, stating: "The firm has faced some pretty serious challenges and fallen from where it was in the 1980s and 1990s. I can see the attraction of the greater security offered by DWF, but if we're looking at it dispassionately I'd say it's because Biggart has run out of other options."