Addleshaw Goddard partners approve HBJ Gateley Scottish merger
Addleshaw Goddard merger with HBJ Gateley to go ahead next year after partners approve the deal
November 28, 2016 at 07:14 AM
3 minute read
Addleshaw Goddard partners have voted to approve the firm's merger with Scotland's HBJ Gateley.
The combination, which will go live on 1 June next year, will boost Addleshaws' revenue by more than £20m and gift the firm new offices in Edinburgh, Glasgow and Aberdeen.
HBJ Gateley confirmed earlier this month that it would be ending its 10-year relationship with listed English firm Gateley by May next year, as news of the discussions with Addleshaws broke.
Addleshaws previously held merger talks with rival Scottish firm Maclay Murray & Spens, with news of those discussions emerging in November 2015. However, the two sides were unable to come to an agreement and talks collapsed in early 2016.
In a statement announcing the deal, which adds around 134 lawyers to Addleshaws, John Joyce, managing partner of Addleshaws, said: "We have for a while had an ambition to be present in Scotland and so are delighted with the overwhelmingly enthusiastic response from the partners, clients and staff of both firms.
"Overall, it's a great fit for our clients and our people. This important development is just one aspect of our strategic ambitions and we remain committed to further expansion internationally and in the UK."
The tie-up, which creates a firm with particular expertise in financial services and real estate, will see HBJ senior partner Malcolm McPherson joining Addleshaws' board. An HBJ partner will also sit on the combined firm's executive team for each of the core divisions: corporate and commercial, finance and projects, litigation and real estate.
McPherson said: "The combination is extremely good news for our clients, our people and our partners. The overwhelming majority of partners at both firms clearly saw the many benefits of the merger strategy and the fact that it positions us very well for further strong growth."
The combined firm will have roughly 230 partners (45 of whom will join from HBJ), more than 1,100 lawyers and a total combined fee income of roughly £224m, based on figures for 2015-16.
Once the merger goes live, some HBJ Gateley partners are set to come in on a lower level of Addleshaws' lockstep. The category C level will sit below Addleshaws' existing equity and fixed-share tiers.
Addleshaws has also been in merger talks this year with US firm Hunton & Williams, however talks stalled in the aftermath of the UK's vote to leave the EU in June, as both sides took stock of the political and economic impact of the referendum.
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