The much awaited merger between Reed Smith LLP, a global law firm with over 1,600 lawyers, and Thompson & Knight LLP, a US-based firm with around 350 lawyers, was called off. Talks of merger have been circulating the legal industry over the recent months until the management of both firms announced that the potential merger was dismissed. Based on the statement released on Thursday, the merger plan was cancelled even before the proposal was submitted to the partnership of both firms for a vote. However, both firms asserted that they will continue to have good working relationship.
Gregory Jordan, Reed Smith global managing partner, said that their firm has nothing but good words for Thompson & Knight. However, today is not yet the best time for a merger. “We are very impressed with Thompson & Knight’s lawyers, practices, and clients. Both firms are coming off record years in terms of profitability, but we cannot get all of the pieces in the right place now.” Jordan assured that their firm would continue to be a partner in other means. “Reed Smith would continue to partner with Thompson & Knight “on shared work” as his firm pursues its strategic initiatives and serves its clients.”
Jeffrey Zlotky, Thompson & Knight global managing partner, noted that merging with another law firm is not an easy task. “A large number of issues have to align to make a merger work.”
Based on the Am Law 100 financial data in 2009, Reed Smith registered gross revenue of $942 million. The firm’s profits per equity partner reached $1 million. Meanwhile, AM Law 200 record showed that Thompson & Knight’s gross revenue was $224 million. Its profits per partner were $855,000.
Posted by marvins
on January 7, 2011. Filed under Home,Law Firm News.
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