Authorized software program firm Clio drops $1B on legislation knowledge big vLex
On Monday, Clio, a 17-year-old Canadian legislation agency administration software program firm, introduced that it has agreed to amass vLex, a 26-year-old authorized knowledge intelligence platform, in a $1 billion cash-and-stock deal.
The announcement comes a couple of yr after Clio’s large $900 million funding spherical, which practically doubled the Vancouver, British Columbia-based firm’s valuation from $1.6 billion in 2021 to $3 billion.
vLex, which was largely bootstrapped till it was bought by non-public fairness agency Oakley Capital in 2022, has been a extremely sought-after asset, based on Jack Newton, CEO and founding father of Clio.
Harvey, the AI-native authorized tech startup, tried to buy vLex a yr in the past, however the acquisition didn’t come collectively, as reported by The Info final July.
vLex is a precious property as a result of its database of authorized paperwork can tremendously enhance AI fashions for legal professionals.
“Information is among the solely long-term defensible aggressive moats an organization can have within the area,” Newton informed TechCrunch.
vLex competes with the Thomson Reuters-owned authorized database and LexisNexis. The acquisition comes shortly after Harvey introduced a partnership with LexisNexis, aiming to complement Harvey’s AI with LexisNexis knowledge.
With the acquisition of vLex, Clio, which supplies legislation companies with time-tracking, invoicing, and digital fee instruments, is now successfully moving into the apply of legislation itself.
Over the previous few years, vLex has constructed Vincent, an AI mannequin constructed on prime of the corporate’s authorized content material database.
“AI goes to drive a convergence of what have traditionally been distinct classes of software program: the enterprise of legislation and the apply of legislation,” Newton stated. He added that Clio’s purchasers within the small and medium legislation agency phase will now have entry to Vincent’s AI capabilities.
Along with asserting plans to amass vLex, Clio stated it has reached $300 million in annual recurring income (ARR).