Pure Legal, the alternative business structure set up by former head of Quindell Legal Services Phil Hodgkinson, has announced its first purchase of a law firm. Pure has bought Pryers, a medical negligence specialist based in York, for £13m.
Mr Hodgkinson told Legal Futures this morning that a further law firm purchase would be announced in January next year, along with the acquisition of a specialist claims management company.
Mr Hodgkinson said Pryers, which has around 60 staff, would keep its brand “indefinitely” and operate as a subsidiary of the ABS.
“This is our first major acquisition and forms an integral part of our future strategy,” he said.
“Clinical negligence and product liability are both areas of work in which we wish to expand, and Pryers are considered one of the top firms in the UK who specialise in these areas of work.
“It is important when creating an ABS that you learn from mistakes made by others. Our strategy is to acquire and collaborate with firms who have the necessary skill sets and experience in areas of legal work we wish to expand into and to couple that with organic growth as we deliver our initial five-year plan.”
Mr Hodgkinson added that the plan “takes into account the financial effect that fixed fees will have on income in clinical negligence and, in our opinion, we are still left with an incredibly profitable business. We see these changes as an opportunity, not a hindrance.”
Ian Pryer, managing partner of Pryers, commented: “Having faced a number of approaches from law firms and companies over the years to acquire Pryers, it was important for us to wait patiently for the right opportunity with the right company to forge ahead with.
“We will continue to build and expand our key areas of clinical negligence and product liability under the stewardship of Pure Legal and, in spite of the government’s attempts to limit the rights of injured people to claim redress, we will continue to fight on behalf of claimants under the Pure banner as we have done for many years.”
Mr Hodgkinson said in October, when Pure Legal obtained its ABS license from the Solicitors Regulation Authority, that he intended to create a firm of 300 people and a turnover of £30m.
Speaking at the PI Futures conference in September he admitted making the wrong choice when selling a previous business, Compass Costs, to Quindell.