Law firm DWF Group, which is active in the marine and trade sector, is in talks to be acquired by UK private equity firm Inflexion.
The London-listed law firm confirmed in a statement that it was “in discussions” with Inflexion regarding a possible cash offer for the company.
The buyout is valued at about £342m ($438m) with shareholders entitled to receive a total consideration of £1 per share under the terms of the offer.
“Discussions between DWF and Inflexion are ongoing and there can be no certainty that an offer will be made, even if the pre-conditions are satisfied or waived,” the law firm said.
The take-private deal would delist DWF from the London Stock Exchange more than four years after it became the UK’s largest listed law firm in 2019.
DWF raised £95m in an IPO that gave the international law firm a valuation of £366m. Shares in the business have fallen 40% since then.
Shares in DWF rose as much as 40% on Monday for their biggest intraday gain on record, on news of the private equity companies offer.
Inflexion, which previously led the buyout of lawyer rankings company Chambers and Partners in 2018, has until 7 August to make a formal offer.
The UK’s Daily Telegraph newspaper reported that at least 40 lawyers are set for a payday of more than £1m each if the law firm goes private.
More than three dozen own stakes large enough to net them payouts, according to Telegraph analysis of public filings.
Jonathan Moss heads the law firm’s marine and trade arm, according to the DWF website.
DWF’s work, which covers both wet and dry shipping, includes representing its clients in cargo, charterparty and cross-border disputes and advice on challenges facing the sector including sanctions, maritime piracy, maritime security and arrests.
Merger-and-acquisition activity involving law firms has been heating up in recent months.
In May, TradeWinds reported that Allen & Overy was planning to merge with Shearman & Sterling to create one of the world’s largest legal firms with $3.4bn in revenue.
