June 2, 2025 – Herbert Smith Freehills (HSF) and Kramer Levin Naftalis & Frankel have completed their transatlantic merger, forming Herbert Smith Freehills Kramer, a new legal powerhouse with 2,700 lawyers and over $2 billion in annual revenue. The merger took effect Sunday following a partnership vote in April, positioning the firm among the world’s top 20 legal practices.
Strategic Rationale
The combination unites Kramer Levin’s strong New York presence with HSF’s UK and Australian roots, reflecting the legal industry’s push for global scale.
“We’re investing clearly in the U.S. and internationally,” said Justin D’Agostino, the combined firm’s global CEO and a longtime HSF leader. The firm will prioritise expanding its U.S. capabilities in private equity, litigation, arbitration, and white-collar crime, with plans to grow its Texas energy practice.
Industry Consolidation Trend
The deal follows last year’s merger of Allen & Overy and Shearman & Sterling (creating A&O Shearman, with nearly 4,000 lawyers). Other firms like Schulte Roth & Zabel and McDermott Will & Emery are currently negotiating a merger.
“Size and profitability are critical to attracting top talent,” noted law firm consultant Kent Zimmermann of Zeughauser Group. The first quarter of 2025 saw 22 law firm mergers, up from 21 in Q1 2024, per Fairfax Associates.
Integration Challenges
While cross-border mergers have increased, consultants caution that cultural and profitability gaps limit viable pairings. Some UK firms like Freshfields and Clifford Chance have opted for strategic U.S. hires instead.
“Only a select few UK-U.S. mergers make sense long-term,” said Tony Williams of Jomati Consultants.