EY Office Sign

EY doesn't seem like it will be losing interest in the legal sphere any time soon. The Big Four accounting firm has acquired Pangea3, a legal managed services business originating from Thomson Reuters, in a transaction that is expected to close in the second quarter of 2019.

This move comes a little over a month after EY signed a deal to begin using contract AI platform Luminance, and a little less than a year after the company acquired alternative legal services provider Riverview Law. With the acquisition of Pangea3, EY gains access to over 1,000 legal professionals and eight service delivery locations on three continents.

“We have delivery centers around the globe, so we will be able to deliver 24/7 on legal managed services. So we have all the assets together for scaled engagement, and that was always the plan and that what's we're going to pursue further,” said Cornelius Grossmann, EY's global law leader.

The Pangea3 acquisition will also allow EY to double down on its contract life cycle management and regulatory risk and compliance capabilities. Both are areas that Grossmann identified as in-demand by clients, citing growing regulatory pressures and an increase in strategic deals and mergers that has resulted in bigger companies with a preponderance of contracts to manage.

“Now with building this legal managed service business around these bulk assignments and being able to address their needs around the globe, we think that is something which the market was waiting for, and our expectation is that the market will gradually appreciate that offering,” Grossmann said.

The company isn't backing away from its legal advisory business either. Grossmann said EY is looking at both boutique advisory firms and tech companies as areas for potential acquisition down the line.

“So we're definitely not done on our growth path, and we are looking constantly for new opportunities to develop this further,” Grossman said.

Thomson Reuters, meanwhile, is looking to sharpen the focus on its content and software offerings. Eric Laughlin, managing director of legal managed services at Thomson Reuters, pointed to examples like the company's legal research tool Westlaw Edge, document review service eDiscovery Point or the recently released workflow solution Panoramic.

Laughlin believes those tools can help both in-house legal departments and law firms that are embarking on a “transformational agenda”—or looking for ways to become more efficient and increase the value they bring to their respective organizations.

“Thomson Reuters is going to be best off, and I think our clients are going to be best off, if Thomson Reuters focuses on the content and the software businesses for their clients and leaves the professional services to other firms,” Laughlin said.