Eversheds closes in on US merger decision with two thirds majority required in partner vote
Firm reaches decision day on proposed tie-up with US firm Sutherland Asbill & Brennan
December 16, 2016 at 05:14 AM
3 minute read
Eversheds needs to secure the approval of two thirds of its partnership for its merger with US firm Sutherland Asbill & Brennan to go ahead, with voting on the deal closing today (16 December).
The UK firm's leadership has been visiting its offices around the world in recent weeks, with chief executive Bryan Hughes, chief executive-elect Lee Ranson, chairman Paul Smith, international managing partner Ian Gray and incoming managing partner Keith Froud putting on a roadshow to discuss the merits of the proposed tie-up with partners.
The feeling within the firm is that Eversheds partners are likely to approve the deal by the required two thirds majority.
One partner told Legal Week: "I don't think anyone at the top level is sweating the detail. Anecdotally, the partnership feels very much in favour of the merger."
US firm Sutherland also needs two thirds of its partners to agree to the deal for it go ahead. If approved, the firms will combine as Eversheds Sutherland early next year under a company limited by guarantee structure, as used by legacy Wragge & Co in its merger with Canadian firm Gowlings in February.
The combined firm will be governed by two boards – an executive board consisting of three partners from each firm that will meet monthly, and a supervisory board of partners from each side.
Partners inside Eversheds suggest that the most likely UK candidates for the executive are Ranson, managing partner Froud, and Gray, who is taking up a role as Eversheds executive partner from May.
Smith is likely to sit on the supervisory board alongside members of Eversheds' current board and representatives from its international offices.
According to partners, the two firms have worked together for three years, with merger talks becoming increasingly serious during recent months.
Eversheds is the larger of the two firms by both revenue and lawyer count. It posted turnover of £405.5m in 2015-16, compared to Sutherland's $301m in 2015. Eversheds employed around 1,400 lawyers that year, compared to roughly 400 at Sutherland.
A US tie-up has been a longstanding ambition of the firm and its outgoing chief executive Hughes. In 2015, Eversheds held merger talks with US firm Foley & Lardner but the talks collapsed before they reached a partnership vote.
Eversheds and Sutherland confirmed they were in merger talks at the end of November. If the deal goes ahead, it will be the most significant transatlantic tie-up since Norton Rose combined with Fulbright & Jaworski in 2013.
Eversheds declined to comment.
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