Herbert Smith Freehills, Kramer Levin Announce Merger Plans (2)

Herbert Smith Freehills and Kramer Levin plan to merge to create one of the 20 largest law firms in the world with more than $2 billion in revenue, the firms said in a statement.

The firms’ partnerships are set to hold a vote on combining, according to a person with knowledge of the situation who requested anonymity to discuss private merger plans. Justin D’Agostino, chief executive of Herbert Smith Freehills, held a global partner meeting Monday to discuss the combination, according to a document seen by Bloomberg Law.

The combined firm would be fully financially integrated, according to the person, while a joint statement from the two firms said it will operate a joint profit pool “from day one.”

The proposed new firm name would be Herbert Smith Freehills Kramer, known in the US as HSF Kramer, according to the statement. The combination will accelerate US growth in sectors including energy, financial services, infrastructure, mining, and technology, the firms’ statement said.

The combined firm would have over 2,700 lawyers, including around 640 partners, across 25 offices globally, according to the firms’ statement.

Around 120 of those partners would be based in the US, according to the statement, “surpassing international peers.”

International law firms have increasingly attempted to break into the US via team hires from domestic firms or transatlantic mergers.

D’Agostino in the joint statement described the proposed combination as “a bold opportunity to build an exciting international firm.”

Herbert Smith Freehills reported revenue for the 2023-24 financial year of $1.3 billion, according to American Lawyer. Kramer Levin’s most recent financial year revenue stood at $435.2 million, American Lawyer figures show.

Kramer Levin operates three offices across the US in New York, Silicon Valley and Washington D.C. It has a sole international office, located in Paris, according to its website.

Herbert Smith Freehills was founded via the merger of UK firm Herbert Smith and Australian litigation powerhouse Freehills in 2012. It has one US office, in New York.

If approved by the firms’ partnerships, the merger would join the ranks of transatlantic tie-ups that include this year’s A&O Shearman combination.