Boston, Massachusetts-based private equity firm Great Hill Partners will invest $25 million in a secondary offering for LECG Corporation, as the Emeryville, California-headquartered consulting firm merges with Great Hill portfolio company portfolio company SMART Business Advisory & Consulting, LLC.

LECG will issue 10.9 million shares, valued at $39.9 million, to be acquired by Great Hill and LECG will issue 6.3 million shares of series A preferred stock for $3.96 per share. The private equity firm will control a 40 percent stake in the combined company.

LECG expects the transaction will be accretive in 2010, the company said. SMART, a portfolio company focused on banking, insurance, real estate, healthcare and education sectors, expects adjusted Ebitda for this year of about $10 million.

There will be a change in company management. LECG chief executive Michael Jeffery said last month that he would step down from his position at the company. Steve Samek, who was named CEO of SMART in December 2008, will head the joined companies. He was previously a managing partner at Arthur Andersen, the accounting firm that fell following the turmoil of the Enron scandal.

SMART focuses on tax, accounting, and systems integration. LECG is a consultant focused primarily on forensics, crisis management, and economic consulting.

Calls placed to SMART and LECG were not returned by press time.

Financial services industry