NLO and Ipsilon join forces with support of private equity investor

NLO and Ipsilon have announced their PE-backed merger. Private equity investors have previously invested in Scandinavian IP firms and are increasingly backing European law firms in other legal fields, such as German tax consultancies. However, PE investment in IP firms remains a nascent trend.

The aim of the merger is clear. Founder of Ipsilon Valérie Feray says, “This is a transformative step in achieving our objective to become the leading European player in IP.”

A joint press release states, “With Ipsilon and NLO’s combined headcount now exceeding 400, and with multiple offices across seven countries, the firm strengthens its global reach and solidifies its position as a key consolidator in the international IP sector.”

The merger also aims to leverage “AI-driven IP management, automation and advanced data security to enhance efficiency, foster innovation, and maintain a competitive edge in a rapidly evolving industry”.

Complementary technical expertise

The two firms’ technical expertise appears highly complementary. According to JUVE Patent research, both firms are well-regarded patent attorney practices in their respective countries.

In France, Ipsilon has a strong reputation for patent prosecution in electronics, mechanics and process engineering. Dutch firm NLO is frequently recommended for pharmaceuticals, biotechnology, medical technology, chemistry, digital communication, computer technology, and electronics. The NLO patent attorneys also have an excellent reputation for technical support in Dutch infringement and revocation proceedings.

The merger’s reach extends well beyond France and the Netherlands. In 2023, as part of its growth strategy, Ipsilon acquired Belgian firm IP Hills with three offices in Belgium. Ipsilon also has offices in twelve French cities, two in Germany and one in Luxembourg. NLO brings two Belgian offices, four Dutch offices and one Munich office.

While Ipsilon’s client portfolio includes L’Oréal, Essilor, Renault, and the CEA, NLO counts Samsung, Heineken, Essity and Danone among its key clients.

Not a full merger

The firms are keeping the merger details private. JUVE Patent learned from Waterland that Ipsilon Group has acquired 100% of NLO’s shares with Waterland’s backing. “The NLO partners are taking a significant stake in Ipsilon Group,” a Waterland spokesperson said. There are currently twelve partners at NLO.

Dutch firm NLO emphasised to JUVE Patent that this is not a full operational merger, with both firms retaining some autonomy. NLO will continue operating in its home market under its established brand and structures. Furthermore, the merger is not expected to significantly alter Ipsilon’s market presence.

Both firms have moved from a traditional partner-led model to a corporate partnership structure. JUVE Patent learned that a management board will include attorneys from the various national divisions, including NLO patent attorneys for the Dutch offices. Valérie Feray serves as Ipsilon Group CEO.

The firms will gradually integrate their work at an operational level, for example in sector groups. Meanwhile, full integration in the long term has not been ruled out.

Future challenges

“At NLO we want to adapt to the changing IP landscape and achieve growth in a consolidated market, strengthening and expanding our geographical presence. By joining forces with Ipsilon, we will accelerate our ambitions, unlock our full potential, and continue driving the future forward,” say NLO’s managing partners René van Duijvenbode and Jeroen Cornelis.

Feray says, “By combining complementary cultures, strategies and a shared focus on high-growth technology sectors, digital transformation and key international markets, we are pushing the frontiers of IP.”

Recently, several patent attorney firms have merged to form larger outfits. For example, Düsseldorf-based König Szynka Tilmann von Renesse recently joined the larger firm Hoffmann Eitle to better enable it to meet future challenges.

French mixed firm Casalonga recently announced further growth plans after hiring a new Munich partner. In addition, IP firm Plasseraud recently opened an Amsterdam office and expanded its Paris litigation team.

Patent prosecution is facing increasing pressure from alternative providers and AI tools. Digitalisation in particular raises challenges for smaller firms, while recruitment and office management strain small and medium-sized practices.

The new Unified Patent Court poses a further challenge. So far mainly lawyers have pled at the court, even though patent attorneys may plead independently. However, if patent attorney firms want to play a role they must deploy large teams and ensure swift proceedings, given the UPC’s tight deadlines and complex case law.