The proposed merger will create one of Australia's largest personal services legal firms
Australian Family Lawyers (AFL) has entered into an agreement to merge with GTC Legal Group through the acquisition of 100% of the latter’s issued share capital.
The proposed merger is set to create one of the largest personal services legal firms in Australia.
Grant Dearlove, executive director at AFL, said the acquisition is a move away from the traditional law firm model in regions like the UK. The proposed merger will bring AFL’s geographic footprint from 19 to 26 offices under seven brands with an FY22 revenue of $40.8 million.
“The merger of AFL and GTC is a seminal moment for the personal legal services industry in Australia with the combined group being uniquely positioned in a $20 billion market ripe for consolidation,” Dearlove said. “For shareholders, it delivers immediate scale, increased revenue and profitability and a more diversified earnings base from family law only to an additional six practice areas.”
“The integration of our complementary businesses will drive immediate and long-term increased revenue and expense synergies, with a significant reduction of duplicated costs already identified,” Dearlove added. “The merged group will have a strengthened board and leadership team with proven track records in legal firm disruption and consolidation.”
Established in 2009, GTC was one of Australia’s first platform law models operating within the personal services legal market. It was founded by current managing director James Stevens.
GTC is the holding company of traditional model law firm Armstrong Legal, non-traditional revenue-sharing model law firm GTC Lawyers, around 1,500 network partners All Courts Lawyers and front and back office service company GTC Legal Group Services.
The group also operates one of Australia’s busiest legal hotlines and two of Australia’s largest legal websites at Go To Court and Armstrong Legal. Its recent acquisition of Armstrong Legal in 2019 has allowed GTC to perform across seven segments of personal law.
“Put simply, the merger of GTC and AFL marks the true beginning of the consolidation of the personal legal services market in Australia – a development that is long overdue,” Stevens said. “The combined resources of the new group will provide it with all the tools it needs to grow and adapt to a rapidly changing world. Our enhanced national presence, top-tier administrative efficiencies and strong record of client acquisition will present a compelling business going forward.”
The proposed merger is endorsed and supported by the Board of AFL.
