The Parabis Group has confirmed the sale of its defendant personal injury firm Plexus Law to a consortium of private individuals, including the group’s original founders, Andrew McDougall and Tim Roberts.
The announcement comes after recent talks with LB100 firm Keoghs failed to result in a deal.
A spokesperson for Parabis said in a statement the board considered both the founders’ and Keoghs’ bids and, with the support of the group’s key stakeholders, has entered into exclusive talks with the founders.
‘The sale is due to complete in November 2015 and represents a positive outcome for our people and clients alike,’ Parabis said.
Legal Business reported in September that Parabis, which was purchased in 2012 by private equity firm Duke Street Capital, was in talks to sell off parts of its business after legal reforms reduced the value of insurance work in the UK, in particular personal injury. Duke Street Capital, which pumped £13m of extra capital into the firm in December 2014 did not receive the return it expected and sought an exit strategy. Indeed, Parabis’ income fell from £12.1m to £8.9m in the year to 31 March 2014 according to filings on Companies House.
In 2012 Parabis Law became the first private equity-backed ABS to be licensed by the Solicitors Regulation Authority, and was seen as one of the forerunners of the new legal landscape in the UK in which firms were able to welcome outside investment.
Defendant insurance law firms, Plexus Law and Greenwoods claimed their merger in May 2012 would create combined turnover of £90m. Since then, Parabis made a series of cutbacks, making a raft of redundancies in Croydon and closing offices in Bristol and Colchester.