EY has made a major addition to its legal services offering with the acquisition of Riverview Law, a deal that has seen DLA Piper offload its stake in the alternative legal services business.

The Big Four accounting firm said the purchase – which will create a new company called EY Riverview Law – will help it to provide a more efficient service to clients by improving transparency and reducing the costs of routine legal activities.

Riverview – which focuses on fixed-fee, process-driven work – launched in 2012 with financial backing from DLA Piper, which initially took a 21% stake in Riverview's parent company, LawVest, a shareholding that has reduced over time to 14%.

A number of senior DLA Piper partners also had personal investments in LawVest, including former joint CEO and managing partner Sir Nigel Knowles – now chairman at DWF – who is non-executive chair of Riverview and held shares amounting to a 0.9% stake in the business. It is understood that those partners have now also sold their shares as part of the deal.

A DLA Piper spokesperson said: "We can confirm that the firm has sold its minority shareholding in Riverview Law and we wish them every success in their next venture."

DLA has, however, retained a small stake in Kim Technologies, an artificial intelligence platform that was acquired by Riverview in 2015 but demerged from the company in September 2017.

Chris Price, EY's global head of alliances for tax, led the team advising on the Riverview acquisition and will become CEO of EY Riverview Law once the transaction is complete, which is expected to take place at the end of August.

A Manchester-based Fieldfisher team, led by corporate partner Tom Ward, advised EY on cross-sector issues across Fieldfisher's technology and outsourcing teams, alongside the rest of its M&A team.

Technology partner Sam Jardine advised on technology and software matters, with Ward being supported by corporate solicitor Rachel Leigh and tax and structuring counsel Andrew Loan, who led on tax matters.

Cornelius Grossmann, EY's global law leader, said: "Legal managed services is one of the fastest-growing segments of the legal market. This acquisition underlines the position of EY as a leading disruptor of legal services; it will provide a springboard for current EY legal managed services offerings and bolster the capabilities that we can help deliver for EY clients.

"We recognise the expertise that Riverview Law has in this growing market area, which when married with the global EY footprint and legal understanding, will help drive significant opportunities for EY clients."

EY now has more than 2,200 legal practitioners in member firms across 81 jurisdictions. The accountancy giant has recruited a number of partners from private practice competitors in recent years, including former Addleshaw Goddard managing partner Paul Devitt and corporate head Philip Goodstone, who now serves as head of law for UK and Ireland.

The news comes after Deloitte last month became the final member of the Big Four to receive an alternative business structure licence, as the accountancy giants continue to make inroads into the legal services market. Deloitte's UK arm also recently agreed an alliance with US immigration firm Berry Appleman & Leiden, a deal that has seen it acquire the law firm's operations outside of its home country.