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Out-of-towners who swallowed Bay Area firms — in whole or part — savored a significant climb in revenues in 2003. Pittsburgh-based Reed Smith, which merged with Oakland’s Crosby, Heafey, Roach & May in January 2003, scored a 39 percent jump in gross revenue, to $438 million. Bingham McCutchen — formed through the July 2002 merger of Boston’s Bingham Dana and McCutchen, Doyle, Brown & Enersen — expects a 10 percent to 15 percent spike in revenue, to about $490 million. And Philadelphia-based Morgan, Lewis & Bockius, which snagged the lion’s share of partners from the now-defunct Brobeck, Phleger & Harrison, boosted its gross revenue by 13 percent, to $631 million. The figures for Morgan, Lewis are through Sept. 30, the close of the firm’s fiscal year, while data for Reed Smith and Bingham are through the end of December. Reed Smith Chairman Gregory Jordan said the merger with Crosby helped the firm capture new business from leading companies in the financial services and life sciences industries. “We worked nearly $20 million in new business that neither Reed Smith nor Crosby would have gotten otherwise,” Jordan said. Bingham also reaped rewards from its merger with McCutchen. “We were able to represent national clients on a national basis,” said Bingham Vice Chairman Donn Pickett. For example, the firm represented Oracle Corp. in its bid to acquire PeopleSoft Corp. and served as counsel to First Data Corp. in response to government opposition to its acquisition by Concord EFS Inc. Bingham also acquired the 60-attorney Los Angeles corporate boutique Riordan & McKinzie in 2003. Pickett said the firm hired 17 laterals in addition to the Riordan group. The three East Coast firms had similar bumps in profits per partner. Equity partners at Reed Smith took home an average $550,000. Prior to the merger, Reed Smith’s profits per partner were $495,000 while those at Crosby were $305,000. Bingham McCutchen said its profits per partner rose 10 percent to 15 percent in 2003, putting the firm at the $1 million mark. And Morgan, Lewis’ profits per partner increased 13 percent, from $720,000 to $810,000. “We were happy given the fact we had a very big investment with the addition of the Brobeck people,” said Morgan, Lewis Chairman Francis Milone. “It reduced what our profits would have been.” Morgan, Lewis acquired 153 of Brobeck’s 518 lawyers following the firm’s collapse in February. Brobeck reported profits per partner of $555,000 in 2002. While Reed Smith, Bingham and Morgan, Lewis reaped rewards from their entree into the Bay Area, several other out-of-town firms either went out of business or left the region. Oppenheimer Wolff & Donnelly closed its Silicon Valley and Orange County offices, leaving the firm with a single significant U.S. office in Minneapolis. And Chicago-based Altheimer & Gray and Cleveland’s Arter & Hadden both disbanded in July. Altheimer’s dissolution came 10 months after the firm launched a San Francisco office.

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