On Monday, Clio, a 17-year-old Canadian regulation agency administration software program firm, introduced that it has agreed to amass vLex, a 26-year-old authorized information 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 almost 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 personal fairness agency Oakley Capital in 2022, has been a extremely sought-after asset, in keeping with 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 Data final July.
vLex is a useful property as a result of its database of authorized paperwork can vastly enhance AI fashions for legal professionals.
“Information is without doubt one of the solely long-term defensible aggressive moats an organization can have within the house,” Newton instructed 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 information.
With the acquisition of vLex, Clio, which offers regulation corporations with time-tracking, invoicing, and digital fee instruments, is now successfully entering into the observe of regulation itself.
Over the previous few years, vLex has constructed Vincent, an AI mannequin constructed on high 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 regulation and the observe of regulation,” Newton stated. He added that Clio’s shoppers within the small and medium regulation 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).
