BC company dubs this biggest M&A transaction ever in legal technology
Clio, a BC-based provider of legal AI technology, has announced the completion of its US$1 billion acquisition of vLex, which it called “a defining moment” for the legal industry and the largest M&A transaction ever in legal technology.
“We founded Clio to transform the legal experience for all, and this milestone brings that mission to a new horizon,” said Jack Newton, Clio’s chief executive officer and founder, in a press release.
According to the press release, with the transaction’s closing, Clio has combined its legal operating system – with capabilities such as Clio Work, Clio Manage, Clio Grow, and Clio Draft – and vLex’s Vincent AI – drawing from vLex’s global legal database of over a billion documents across 110 jurisdictions – into the Intelligent Legal Work Platform.
Clio’s press release stated that the new platform seeks to:
- Connect practice management, research, drafting, and firm operations via AI-powered workflows
- Link up the business and practice of law through AI that comprehends legal work’s substance and mechanics
- Shift toward a system of action leveraging dynamic intelligence from a traditional system of record
“With vLex now part of Clio, and 350+ experts in law, data, and technology joining our team, we are combining the best minds and the best tools to build the world’s most powerful legal intelligence platform, a platform that will define how legal work is done for generations to come,” Newton said.
Last October, at its annual conference called ClioCon, Clio revealed its Intelligent Legal Work Platform and a suite of new products.
In March, Clio acquired ShareDo, which became Clio Operate, an adaptive work management platform for large firms and corporate legal departments. Clio noted that this platform, used by UK firms, is presently available in the US and other international markets.
Clio shared that its new Clio for Enterprise, which combines Clio Operate’s and vLex’s capabilities, seeks to serve global legal teams’ complex needs.
The Globe and Mail reported that the vLex acquisition has doubled Clio’s potential market and helped it compete against major players such as Thomson Reuters and LexisNexis.
Funding round
Alongside the deal’s completion, Clio also announced the closing of its US$500 million Series G funding round, valuing the company at US$5 billion.
New Enterprise Associates (NEA) led the round, which included investors TCV, Goldman Sachs Asset Management, Sixth Street Growth, and JMI Equity.
“Clio continues to demonstrate the clarity, execution, and ambition that define enduring market leaders,” said Tony Florence, NEA co-CEO, in Clio’s press release. “The company has built one of the most trusted platforms in legal technology, and its integration of AI is reshaping how work is done across the profession.”
Clio’s financing included a strategic US$350 million debt facility, led by Blackstone, as well as funds managed by Blue Owl Capital.
“The addition of financing partners like Blackstone and Blue Owl Capital reflects the strength and resilience of our business,” said Curt Sigfstead, Clio’s chief financial officer. “This financing supports transformational moves like the acquisition of vLex and gives us the flexibility to act quickly on future opportunities that advance our mission and shape the future of legal technology.”
Oakley Capital, an European private equity firm and vLex majority shareholder, decided to take Clio stock as part of the transaction.
“Oakley’s decision to become a shareholder in Clio is an incredible vote of confidence,” Newton said. “They share our belief in the transformative potential of AI in the legal industry and the scale of opportunity ahead.”
Clio’s legal counsel included Osler, Hoskin & Harcourt LLP, Wilson Sonsini Goodrich & Rosati, Gowling WLG, and Pérez-Llorca. Meanwhile, A&O Shearman acted as vLex’s legal counsel.
