Key Takeaways
- • Inflexion Private Equity is making a "strategic investment" in aosphere, the legal risk management division of Allen & Overy, which will become a stand-alone entity while A&O retains "a significant minority stake."
- • aosphere reported revenue of £20.7 million and an operating profit of £4.9 million in the financial year ending December 2022, according to the firm's LLP accounts.
- • One person with knowledge of the deal pointed to reports that valued the business at more than £200 million; the figure has not been confirmed by the parties.
- • Endicott Capital, a U.S.-based information services investor, also joins the investment, and aosphere plans to grow in the U.S. and possibly through acquisition.
- • The divestment comes weeks after A&O's merger with Shearman & Sterling was approved by 99% of votes cast at each firm, creating a combined firm with about $3.4 billion in revenue.
Summary
Allen & Overy has agreed to make its legal risk management division, aosphere, a stand-alone entity through a strategic investment from Inflexion Private Equity, the firm announced. A&O will keep a "significant minority stake" in the business. A&O said aosphere intends to grow in the U.S. and, where appropriate, through acquisition. Investment will also come from Endicott Capital, a U.S.-based investor specialising in information services. Wim Dejonghe, A&O's senior partner, said Inflexion is "a world-class partner" and that the firm looks forward to working with Inflexion and the Endicott team.
A&O created aosphere in 2002. According to the firm's LLP accounts, aosphere generated revenue of £20.7 million in the financial year ending December 2022 and an operating profit of £4.9 million. The business sells annual subscription access to online legal analysis across a range of compliance topics, and it serves more than 700 clients, including banks, asset managers and corporates. Asked about the deal's value, one person with knowledge of the situation pointed to reports that the transaction valued the business at more than £200 million. The parties have not disclosed a price.
The transaction follows the completion of A&O's approval process for its merger with Shearman & Sterling earlier in October. Partners at both firms voted overwhelmingly for the tie-up, with 99% of votes cast at each firm in favour, according to a joint announcement. The merger is expected to be completed in 2024, creating A&O Shearman, which is set to become the third-largest law firm in the world with combined revenues of approximately $3.4 billion.
A&O created aosphere in 2002. According to the firm's LLP accounts, aosphere generated revenue of £20.7 million in the financial year ending December 2022 and an operating profit of £4.9 million. The business sells annual subscription access to online legal analysis across a range of compliance topics, and it serves more than 700 clients, including banks, asset managers and corporates. Asked about the deal's value, one person with knowledge of the situation pointed to reports that the transaction valued the business at more than £200 million. The parties have not disclosed a price.
The transaction follows the completion of A&O's approval process for its merger with Shearman & Sterling earlier in October. Partners at both firms voted overwhelmingly for the tie-up, with 99% of votes cast at each firm in favour, according to a joint announcement. The merger is expected to be completed in 2024, creating A&O Shearman, which is set to become the third-largest law firm in the world with combined revenues of approximately $3.4 billion.
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