City firm Nicholson Graham & Jones is set to merge with US firm Kirkpatrick & Lockhart later this year following an announcement last week that the firms have been in talks about a tie-up for four months.

If the merger goes ahead, the combined firm would have 935 lawyers and a projected annual turnover of $500 million (£267 million) in its first year.


The two firms - Pittsburgh-headquartered Kirkpatrick has 800 lawyers to Nicholson Graham's 135 - have already commenced working together on a range of client deals in anticipation of merger.


Kirkpatrick's management committee and the partnership board of Nicholson Graham have sanctioned the negotiations, which have taken place in London and the US with partners at both firms being briefed on the discussions.


They hope that formal merger proposals can be put to the respective partnerships in September or October this year, with a view to calling the new firm Kirkpatrick & Lockhart Nicholson Graham.


A joint statement from Peter Kalis and Michael Johns, chairmen respectively of Kirkpatrick and Nicholson Graham, said: 'By combining our firms, we will meet the challenge [of globalisation] with talented lawyers, critical mass, and practice diversity on both sides of the Atlantic.


'Further expansion into continental Europe as well as into other key US markets will be an early priority for our combined firm.'


It said the firms synchronise across many disciplines including investment management, funds, mergers and acquisitions, private equity, property, litigation, construction, intellectual property and insurance work.


Mr Johns said: 'For some time Nicholson Graham has desired to participate in the continuing consolidation in the UK legal market and internationalisation of the practice, so as to broaden our areas of expertise, enlarge our resources and thus better serve our clients. We believe that a combination with Kirkpatrick will achieve these ends.'