National defendant insurance firm Plexus Law, based in Leeds, has recently been acquired by Axiom Ince Limited, the owner of UK law firm AxiomDWFM and international insurance specialist Ince & Co. The acquisition, which took place after Plexus Law entered administration due to historical financial irregularities, has resulted in the preservation of 520 employee jobs and 20 fixed share partner positions.

Following the discovery of financial irregularities leading to an overstatement of profits, Plexus Law filed a notice of its intention to appoint an administrator in early June. Investors decided against further financial support for the company, prompting the need for external intervention. On the same day as the acquisition, a team from Interpath Advisory was appointed as joint administrators of Plexus Law’s businesses.

James Clark, the joint administrator, expressed relief at the successful transaction, which not only secures the future of the business but also safeguards the jobs of 540 employees without any redundancies. Axiom Ince Limited exhibited strong determination and commitment from the outset, prioritizing the acquisition to protect client interests and support the practice’s growth.

Plexus Law, with its seven offices across the UK, is a prominent player in the defendant insurance sector, serving over 50 public sector clients and collaborating with four of the top 10 motor insurers. Established in 2017 following its acquisition from the private equity-owned Paribas Law, which had faced collapse, Plexus Law faced challenges as a new management team discovered over-recognized contingent fees in the group’s accounts, leading to an overstatement of profits in FY20 and FY21.

Interpath Advisory noted that the forensic investigation into the financial irregularities caused a delay in filing the FY21 statutory accounts, resulting in a revised financial position from profitability to a loss-making situation. The compounded challenges of the COVID-19 pandemic and declining sales in a competitive marketplace further increased the financial strain on Plexus Law.

Axiom Ince Limited, the acquiring entity, was formed in 2021 through the merger of London-based Axiom Stone and regional firm DWFM Beckham. With offices in key locations such as London, Bristol, Swindon, and Birmingham, Axiom Ince Limited aims to achieve revenue of £100 million by 2025.

Rudi Kesic CEO at Verify 365 said, “The acquisition of Plexus Law by Axiom Ince Limited marks a significant turning point for both firms. Axiom Ince Limited, the owner of UK law firm AxiomDWFM and international insurance specialist Ince & Co, has demonstrated a strong commitment to the growth and stability of Plexus Law right from the initial expression of interest. This determination not only safeguards the future of the business but also prioritises the protection of client interests, an essential aspect of the legal profession.”

“One of the most noteworthy outcomes of this acquisition is the saving of 520 employee jobs and 20 fixed share partner positions. In a challenging economic climate, where job security is uncertain for many, such positive news brings hope and relief. It showcases the resilience and strength of the legal sector in navigating through difficult times and finding viable solutions to sustain businesses”.