LAWFUEL – The Law News Network – The first combined global revenue results revealed following the merger DLA Piper Rudnick Gray Cary (“DLA Piper”) today announced a global revenue of $1.5 billion/ £847.3 million /€1.24 billion for the fiscal year ending on 31 December 2005. The announcement provides the first glimpse into revenue figures for the combined firm since the merger of DLA, Piper Rudnick and Gray Cary Ware & Freidenrich LLP on 1 January 2005.
In addition to global revenue, DLA Piper announced year-end results for other key indicators of performance. The results show that the combined business has performed well in each of its key markets, while continuing to invest in its existing offices, emerging markets and ongoing operational integration.
2005 Global Financials
Sterling Dollars Euro
Revenue: £847.3 m $1,542.0m €1,239.5m
Net operating income: £338.8m $616.4m €495.5m
Profits per equity partner: £569,000 $1,036,000 €833,000
Revenue per lawyer: £297,000 $540,00 €434,000
Number of lawyers: 2,850
Using the most recently available figures provided by American Lawyer/The Lawyer Global 100 and Legal Business Global 50 in 2004, these results make DLA Piper Rudnick Gray Cary one of world’s highest grossing law firms.
“These results show that we are making good progress in all our key markets, which in turn will enable us to realise our full potential as a global business,” said Nigel Knowles, Joint-Chief Executive Officer of DLA Piper. “Our success post merger further reinforces our belief in the business case for developing a truly global legal capacity. Going forward we will continue to sharpen our attention on our client relationships – both at local and international levels. Achieving greater efficiencies through operational integration in the areas that underpin both our long-term future and our service delivery to clients is also a priority as we seek to support clients across our many jurisdictions.”
“While we have taken this opportunity to celebrate our initial success as a global entity, we have much more to accomplish,” explained Francis B Burch Jr, Joint-Chief Executive Officer of DLA Piper. “Rather than falling victim to the ‘be all things to all clients’ paradox that traditionally impacts firms of our size, we remain focused on the core practice areas our clients truly value, regardless of where in the world they choose to do business. In this way, our global presence comes as a result of this focus but is not the strategy by itself. Based on the feedback we receive from clients on a daily basis, this approach is clearly resonating and, most importantly, is aligned with their needs.”
Both Knowles and Burch are encouraged by the calibre of lawyers interested in joining DLA Piper across all practice areas in several countries. The firm has continued to serve as an attractive option for high-profile lateral partner hires whose practices benefit from a global platform. They also praised the commitment and capabilities of all its newly-elected partners and associates whose work has helped to drive the overall progress of the business.
Several key milestones achieved in 2005 have fuelled DLA Piper’s strong revenue results. They include:
• A growing number of multi-jurisdictional client engagements, which involve teams of lawyers located in two or more countries around the world.
• A net increase in the total number of lawyers to 2,850 from 2,628 at the time of the merger. This figure includes lateral hires made during 2005.
• The addition of 140 lateral partners globally.
• Continued global expansion through the opening of new offices in Beijing, Dubai, Frankfurt, Kyiv, Tbilisi, Tokyo and St Petersburg.
• Emergence as one of China’s largest international legal services organisations through the acquisition of a significant portion of the former Coudert Brothers’ Beijing office.
• Significant expansion of existing offices with lateral hires in Brussels, France, Russia, Shanghai, Singapore and Spain.
• The recruitment of over 80 lawyers, including 20 partners from the former Coudert’s offices in Brussels, Beijing, France, Frankfurt, Shanghai, Singapore, Tokyo and the US.
• The development of an African practice supported by two key partners appointed for their experience across the continent in banking, telecoms, oil and gas and mining sectors, and an alliance relationship with Cliffe Dekker in South Africa.
• The establishment of an alliance relationship with DLA Matouk Bassiouny in Egypt, which has links into both Africa and the Middle East.
• Increased investment to support the ongoing operational integration of systems and processes.
• The successful launch of New Perimeter, a unique, global initiative designed to support major international pro bono projects driven through a non-profit affiliate of DLA Piper.
“We are certainly proud of the outstanding financial results our firm has delivered in its first year as a combined global entity,” said Senator George J Mitchell, Chairman of DLA Piper Rudnick Gray Cary. “We created this firm in recognition of the growing globalisation of business and the increasing need among clients for a firm that offers well-rounded practice depth and a single resource for all global legal needs. Our first year financials illustrate that this strategy has succeeded and we are poised for continued success in the future.”