Pinsent Masons, the global legal firm, is taking a majority stake in a cloud computing business which it helped launch two years ago.
The investment will result in Cerico relocating to Pinsent Masons’ offices in Glasgow, while all residual rights in the technology will transfer to the law firm.
As part of the move – due to take place at the start of next month – Richard Masters, former managing partner of McGrigors, which merged with Pinsent in 2012, will become executive chairman of Cerico.
The technology developed by the firm automates many of the compliance processes that businesses need as a result of legislation such as the Bribery Act and the Health and Safety at Work Act.
Cerico – launched in conjunction with IT developer Campbell Nash – is said to have made significant progress since it was “soft-launched” in 2013, securing contracts with the likes of Aggregate Industries, Clyde Blowers Capital portfolio companies and Qinterra.
Masters said: “The potential in the business is there for all to see, and it’s now a question of delivering on that promise.”
Jim Armstrong, Cerico chief executive, said: “I’m delighted that a firm with the scale, resources and international reach of Pinsent Masons has shown such a clear commitment to this business.
“This investment will allow us to take the business to the next level in terms of further development of the platform.”
Pinsent senior partner Richard Foley added: “Richard has the right entrepreneurial instincts to develop Cerico and I am confident that he and Jim will make Cerico a great success.”