PINSENT Masons has taken majority control of Cerico in a deal which will see experienced Scottish based lawyer Richard Masters become executive chairman at the online compliance business.
The law firm launched Cerico as a joint venture with Glasgow IT consultancy Campbell Nash around two years ago.
Pinsent Masons would not say how much it has paid to take the largest shareholding in the business but Mr Masters indicated it was a “significant number”.
He also said Cerico will double staff to around 20 by the end of this year as part of its expansion plans.
The physical operations of the company have already been relocated into the Pinsent Masons office in Glasgow.
Mr Masters, former managing partner of McGrigors before it merged with Pinsent Masons, admitted he was delighted to take up the opportunity.
He said: “I think it is really exciting to be able to do something like this while still really attached to a large international law firm is fantastic.
“For me personally it is a unique opportunity for me to do something quite different and exciting but still with the connection back into Pinsent Masons.
“We have 10 people [at Cerico] and would expect to have doubled that by the time we head towards the turn of the year.”
Cerico was launched as a way to automate compliance processes in response to legislation including the Bribery Act and Health and Safety at Work Act.
The cloud computing service allows companies to make sure suppliers go through regular compliance checks and highlights potential legal risks.
It is available in several languages and also offers electronic learning and policy templates to help businesses mitigate risks.
Clients include Clyde Blowers Capital portfolio companies, ProServ, Energy North West Limited, Aggregate Industries and Qinterra.
Jim Armstrong, chief executive of Cerico, said: "This investment will allow us to take the business to the next level in terms of further development of the platform."
Mr Masters, who will stay in place as a partner on the Pinsent Masons board and as its head of client operations, said Cerico has ambitious plans to expand its product offering and client base.
He said: “One of the immediate priorities is looking at the UK and European market. That is where the focus will sit for the next 12 months or so. We will look to expand internationally after that.
“We are operating in a global compliance marketplace. They compliance products we are offering are all designed to help businesses embed their codes of conduct.
“That is a global play and one which is going to get more complex as additional layers of compliance and regulation get added into the mix.”
Mr Masters said not all Cerico clients have links to Pinsent Masons but conceded the international offices of the law firm – across Europe, Middle East, Asia and Australia – would “be obvious places” for Cerico to look to pick up clients in the longer term.
He added: “We have been in start-up mode over the past 24 months, and during that time have seen real and sustained demand for a solution which takes the heavy lifting out of the compliance burden for general counsel.
“The potential in the business is there for all to see, and it's now a question of delivering on that promise."
Mr Masters said it was still early to be talking about turnover numbers at Cerico but indicated its contract value is sitting at around £1 million.
Richard Foley, senior partner of Pinsent Masons, said: "This significant investment is a demonstration both of the confidence we have in the Cerico business, and of Pinsent Masons' appetite for taking a chance on bold and innovative solutions.
"Richard has the right entrepreneurial instincts to develop the Cerico business and I am confident that he and Jim will make Cerico a great success."
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