Arnold & Porter LLP and Kaye Scholer LLP will merge on 1 January next year to create a new firm with more than 1,000 lawyers, 13 offices across the US, Europe and China, and combined revenues around $1bn. The merger plan was announced internally and to key clients on Thursday following votes in favour by both of the firms’ partnerships. The new firm will be called Arnold & Porter Kaye Scholer.

Consolidation continues

The tie-up between the pair is just the latest landmark in the steady consolidation of the US legal market, as players struggle to maintain growth amid lackluster demand and economic uncertainty. Both Arnold & Porter and Kaye Scholer suffered financial losses last year – Arnold & Porte’s revenue slumped 6.4 per cent to $650m, while Kaye Scholer shed 1.3 per cent to $370m. ‘We’re in a starkly different environment than the pre-2008 world,’ commented Dan DiPietro, chairman of Citi’s law firm group. ‘It almost requires firms to think about whether a merger strategy could work for them.’

Combining strengths

As suitors, the pair will bring different but complementary strengths to the table in the new firm. Arnold & Porter is a Washington DC-based firm renowned for its work in litigation and regulatory matters, while New York-based Kaye Scholer is best known for its work in financial services and life sciences.

Sources: Wall Street Journal; New York Times; Lawyers Weekly