Two national firms are merging to create a £90m defendant insurance litigation business with more than 1,200 staff.

Dispute resolution firm Greenwoods is to join insurance firm Plexus Law under the umbrella of the £150m Parabis Law group. The two firms have already signed heads of terms, with the deal expected to complete in mid-May.

Parabis Law chief executive and Plexus Law senior partner Tim Oliver said: ‘Together we have greater strength in depth and capability the better to serve out clients in this rapidly developing market.’

Greenwoods senior partner Paul Parson said: ‘The insurance market is consolidating with fewer firms emerging as a result. The merger has given us something no other merger could – a wired-in connection to a multi-disciplinary insurance services group with insurance law at its heart.’

Greenwoods equity partners are to join Parabis Law, with Malcolm Henke and Richard Houseago also joining the executive management team at Plexus Law.