Morgan Lewis, a large Philadelphia law firm, approved the Bingham deal, with the majority of Bingham’s partners (227 of approximately 300) moving over and increasing Morgan Lewis’ headcount to nearly 2,000 lawyers. A total of 600 out of the currently 700 Bingham attorneys are expected to join Morgan Lewis. A condition of the deal set a period of time for key Bingham partners to stay at Morgan Lewis after the deal or forfeit their capital investment into the partnership. The deal is being referred to as a mass lateral hire and not a merger.
Morgan Lewis’ gross revenue is expected to reach approximately $2 billion after the deal, vaulting it among the top five U.S. law firms by gross revenue. The deal will strengthen Morgan Lewis’ presence in key legal markets, including New York, Washington D.C., Boston, and California and add a number of Bingham’s well-regarded practice groups, including structured finance and tax controversy.
There is significant risk and cost associated with the deal for Morgan Lewis. It will be taking on additional commercial leases in expensive markets as well as integrating hundreds of new partners into the firm.
The deal is expected to close by the end of November, after months of negotiations about a potential combination. Bingham, a Boston legal brand with roots tracing back to 1891, initiated talks after experiencing a rocky 18 months characterized by poor financial results and partner exits. Last year, Bingham’s revenue dipped by 12.6%. The total number of Bingham lawyers slid from 1,100 at the firm’s height to 700 at the time of the deal. Without the deal with Morgan Lewis, Bingham faced the possibility of bankruptcy, a highly unattractive alternative in light of the recent key decision that involved partner clawback claims. Whether Bingham will continue independent operations has not yet been disclosed.