Key Takeaways
- • Allen & Overy is selling the majority of Aosphere, its legal and regulatory risk management business, to private equity investors Inflexion (via its Partnership Capital II fund) and US-based Endicott Capital.
- • Aosphere was created by A&O in 2002 as a legal and compliance data subscription business and has more than 40 professionals across London, New York, Adelaide, Belfast, Germany and Dubai.
- • A&O will retain a minority stake, and Aosphere will become a stand-alone entity.
- • The stated strategy is to build a scaled, global regulatory data business, with a particular aim of growing in the US.
- • A&O says the sale was not a direct result of its merger with Shearman & Sterling, though the merger accelerated the decision according to someone close to the deal.
Summary
Magic circle firm Allen & Overy is selling the majority of its legal risk management business, Aosphere, to private equity firms, according to City AM. The transaction involves London-based Inflexion, which is making a "strategic investment" through its Partnership Capital II fund, alongside Endicott Capital, a US-based investor. The stated objective of Inflexion and Endicott's ownership is to create a scaled, global regulatory data business covering a range of cross-jurisdictional topics, with particular emphasis on growing the business in the United States.
In a statement on the deal, David Whileman, partner and head of partnership capital at Inflexion, said: "The sector is one we've tracked for some time as heightened regulatory scrutiny and complexity have led to growing demand for efficiency and thus outsourcing in legal spend." Aosphere's chief executive, Marc-Henri Chamay, is also a co-founder of the business. A&O created Aosphere as a wholly owned affiliate in 2002 to provide a legal and compliance data subscription. The business has grown to more than 40 professionals across London, New York, Adelaide, Belfast, Germany and Dubai. Following the transaction, Aosphere will operate as a stand-alone entity, with A&O retaining a minority stake.
The announcement follows the approval earlier in October of A&O's merger with Shearman & Sterling, which was backed by 99 per cent of votes cast at each firm. The combined firm will have nearly 4,000 lawyers and 800 partners across 48 offices, with combined revenues of approximately $3.5bn. According to someone close to the deal, the Aosphere sale was not a direct result of the merger, although the merger did accelerate the decision.
In a statement on the deal, David Whileman, partner and head of partnership capital at Inflexion, said: "The sector is one we've tracked for some time as heightened regulatory scrutiny and complexity have led to growing demand for efficiency and thus outsourcing in legal spend." Aosphere's chief executive, Marc-Henri Chamay, is also a co-founder of the business. A&O created Aosphere as a wholly owned affiliate in 2002 to provide a legal and compliance data subscription. The business has grown to more than 40 professionals across London, New York, Adelaide, Belfast, Germany and Dubai. Following the transaction, Aosphere will operate as a stand-alone entity, with A&O retaining a minority stake.
The announcement follows the approval earlier in October of A&O's merger with Shearman & Sterling, which was backed by 99 per cent of votes cast at each firm. The combined firm will have nearly 4,000 lawyers and 800 partners across 48 offices, with combined revenues of approximately $3.5bn. According to someone close to the deal, the Aosphere sale was not a direct result of the merger, although the merger did accelerate the decision.
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