Source: FT
UK law firm is latest business to take PE money to help expand non-core units.
The transaction, which involves UK private equity firm Inflexion and US investor Endicott Capital taking stakes in the business, values aosphere at more than £200mn, according to a person familiar with the details. Allen & Overy will retain a minority interest in the company.
The decision to sell stakes to private equity comes as Allen & Overy continues to reshape its business following its decision to merge with New York law firm Shearman & Sterling, in what is one of the legal industry’s largest-ever tie-ups.
Founded in 2002, aosphere is an online legal services provider that offers risk management and data products to clients including banks and asset managers.
The business, which employs a team of lawyers, helps its clients manage data privacy and shareholder disclosure obligations, among other things, by providing online legal analysis on a subscription basis.
The cash injection from private equity will be used to help aosphere expand into other markets including the US, both organically and through pursuing new deals, as well as launch new product lines.
“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,” said David Whileman, a partner at Inflexion, in a statement announcing the deal.
Allen & Overy is following other businesses in taking private equity money to help expand non-core units while retaining a stake to benefit from any upside.
In July, US private equity group GTCR announced a deal to buy a majority stake in Worldpay from FIS in a deal valuing the company at $18.5bn. FIS retained a 45 per cent stake in the business.
Read full article: https://www.ft.com/content/26f4ff68-922f-4fa7-ab67-c261c082a904
