We called it earlier and would encourage you to read our in-depth analysis as to why Thomson Reuters is selling its Legal Managed Services business to EY (and why that is a good fit), but this release below now confirms an agreement has been reached. The acquisition of the business that was formerly known as Pangea3 boosts EY’s legal professionals by over 1,000 across eight locations on three continents:
EY and Thomson Reuters today (3 April) announce an agreement for the acquisition of the Thomson Reuters Pangea3 Legal Managed Services (LMS) business by various firms in the EY network. Following the recent acquisition of Riverview Law, EY Law practices are broadening further their depth and capacity to serve corporate legal departments around the world. The acquisition will bolster the ability for EY Law practices to help clients transform their practices and deliver meaningful value to their businesses.
Pangea3 is an award-winning leader in legal managed services, with more than 1,000 legal professionals across eight service delivery locations on three continents. By leveraging legal, technical and business-process talent in quality, cost-effective centers, Pangea3 helps clients mitigate legal risks, reduce burdensome costs and provide continuity and scale to budget-strapped legal teams.
The acquisition will greatly enhance EY technology-enabled legal managed services in the three core areas of contract lifecycle management, regulatory risk and compliance, and investigations and litigation. In addition, EY Law practices, comprising more than 2,400 lawyers in 84 countries, will continue to rapidly grow their Legal Advisory services.
Mark Weinberger, EY Global Chairman and CEO, says: “This new enhanced offering will make EY one of the leading professional services organizations for global legal advisory services and legal operations services, including legal function advisory, managed services and technology. The acquisition is an example of how EY is working to provide clients with holistic solutions, which are enabled by technology.”
Kate Barton, EY Global Vice Chair – Tax, says: “The EY Law practices will connect the practice of law with the business of law globally. Legal departments recognize that the future lies in aligning more closely with broader business transformation and we are uniquely positioned to offer a globally consistent, leading approach across the enterprise.”
Pangea3 was the original pioneer in the alternative legal services space and has grown significantly within Thomson Reuters. Clients will continue to receive the same level of quality they have come to expect under Thomson Reuters and will also have access to a broader set of services.
Brian Peccarelli, Chief Operating Officer, Customer Markets, Thomson Reuters, says: “As we sharpen our focus on our core strengths – bringing new technology and workflow solutions together with our leading legal research, content and software solutions to our customer base – we believe the LMS business will be even better positioned to define the next evolution of alternative legal services with EY.”
Eric Laughlin, Managing Director, Legal Managed Services, Thomson Reuters, says: “Clients acknowledge that they need to modernize their legal operations; with Pangea3 and EY together, legal departments will benefit from broadened legal services offerings that bring the legal domain knowledge and scale to help guide and implement their transformation agenda.”
The transaction is expected to close in the second quarter of 2019, subject to the satisfaction of various closing conditions.
For more on Thomson Reuters’ strategy and how it is focusing on higher margin products, not services, see: