Slater & Gordon has bought the majority of Pannone's legal divisions, including its personal injury and clinical negligence departments.
A new and independent business called Pannone Corporate will also be created which will retain the firm's commercial and corporate work.
Pannone managing partner Emma Holt said that the deal would see Slater & Gordon take over teams that had market leading positions, which were staffed with lawyers who were at the forefront of their disciplines.
“In terms of helping those who have suffered an injury, the combined business will offer a complete service with strength and depth in all areas of Personal Injury work," said Holt.
"It will be able to provide high quality legal advice together with financial planning through its investment management company, Adroit, for those who receive compensation. The Court of Protection team will also manage the financial and personal affairs of those who have lost capacity.
“We are acknowledging the changing legal landscape which is rapidly evolving on the back of deregulation and legislative reforms and by combining our business with Slater & Gordon we will be a formidable force in the legal market.”
Slater & Gordon has also revealed that it is looking to take over Leeds-headquartered Simpson Millar. Discussion about any deal have been postponed until early 2014.
The Australian behemoth has bought a string of firms this year, including Taylor Vinters' and Chadwick Lawrence's PI books, Goodmans and Fentons.