Adelaide’s Thomson Geer buys out Sydney law firm as rapid growth continues
ONE of Australia’s biggest law firms has snapped up a major Sydney competitor as it continues its national expansion from its Adelaide headquarters.
ONE of Australia’s biggest law firms has snapped up a major Sydney competitor as it continues its national expansion from its Adelaide headquarters.
Gouger St-based Thomson Geer yesterday (THURS) announced a merger with Kemp Strang, a mid-market banking and finance firm with revenues of $19 million.
The deal, signed on Tuesday night but announced to staff at 3pm in Sydney yesterday, cements Thomson Geer in the top 10 Australian law firms with estimated first year annual revenue of more than $150million.
It is the latest in acquisitions for the firm, formerly known as Thomsons Lawyers until it merged with Melbourne-based Herbert Geer in 2014. A possible ASX listing is not ruled out.
Under the terms, thrashed out after five months of secret negotiations, TG will acquire all of Kemp Strang’s assets and clients, retain 13 of 16 partners while hiring the majority of its staff.
While there will be redundancies, the number of which is still being finalised, the new firm will employ 550 people in Adelaide, Melbourne, Sydney and Brisbane.
While a fifth of its national business will be in Adelaide, there are no immediate plans to move its headquarters interstate.
The new deal will rank it as the 9th largest firm in Australia, by partner numbers – ahead of Adelaide rivals Johnson Winter Slattery and Piper Alderman.
Kemp Strang is ranked 38 while the biggest national firm is HWL Ebsworth Lawyers.
Thomson Geer chief executive partner Adrian Tembel, 48, told The Advertiser his firm remained one of Australia’s largest independent legal practices although the deal allowed for “further national growth”.
He said the firm, which has its entire national executive team based in Adelaide, could potentially one day go public. The corporate firm does not undertake no win no fee compensation cases.
“An ASX listing is an interesting future option that we don’t rule out,” he said.
“If you are going to rebuild the local SA economy you need to rebuild its institutions and with the expansion of headquartered offices.
“This (deal) is a good sign of rebuilding where a major business like ours not just has its headquarters stay in Adelaide but actually competes nationally. It is a reversal of trend.
“It is an important milestone. The numbers are very real and our annual revenue will be substantial.”
Declining to name new clients, he said they were predominately in banking and finance.
Existing clients include major SA firms across many sectors. It has also advised the former Labour State Government on privatisations.
Mr Tembel, the boss for almost 10 years, said the investment would help build its finance capabilities while meeting a desire to expand into areas such as insolvency and recovery services to “cover off any cyclical shifts in the economy”.
In a statement, Kemp Strang’s retiring executive chairman Michael Joseph said: “After 43 successful years… it is now time for (us) to evolve as part of a large, more diverse Australian law firm.”