The potential merger shows trend of increasing consolidation within the legal industry
Troutman Pepper Hamilton Sanders and Locke Lord, two U.S. law firms, have confirmed that they are currently discussing a potential merger, which could lead to the largest law firm combination seen so far this year, according to a report by Reuters.
The news comes amidst a significant increase in law firm mergers nationwide. Representatives from both firms have confirmed their ongoing discussions about a possible combination. The firms said its priority is delivering exceptional legal services to its clients.
Troutman Pepper, the larger of the two, boasts a roster of more than 1,100 lawyers spread across 22 U.S. cities. The firm was established through the 2020 merger of Troutman Sanders, originally based in Atlanta, and Pepper Hamilton from Philadelphia. According to data from the American Lawyer, Troutman Pepper generated approximately US$ 1.08 billion in gross revenue in 2023.
Locke Lord reported revenues of about US$ 497.6 million last year, as per the American Lawyer's rankings. The firm has expanded significantly over the years through strategic mergers, including the notable combination with Boston-based Edwards Wildman in 2015, which solidified its presence. Currently, Locke Lord operates with over 500 lawyers in 20 locations worldwide.
The potential merger between Troutman Pepper and Locke Lord highlights a broader trend of increasing consolidation within the legal industry, Reuters reported. According to Fairfax Associates, a consultancy that tracks law firm mergers, there was a 25 percent increase in law firm mergers during the first three months of 2024 compared to the same period in 2023. Fairfax recorded 20 completed law firm combinations in the first quarter of 2024, up from 16 during the early months of 2023.
This uptick in merger activity is expected to continue throughout the year. Notably, another significant merger is horizon with UK-based Allen & Overy and New York's Shearman & Sterling set to combine on May 1.
