Legal software company Clio drops $1B on law data giant vLex

On Monday, Clio, a 17-year-old Canadian Law Firm Management Software Company, announced that it has agreed to acquire Vlex, a 26-year-old platform for legal data intelligence, in a cash-and-stand deal of $ 1 billion.

The announcement is made about a year after the massive financing round of CLIO of $ 900 million, which almost doubled the company’s assessment in Vancouver, which has almost doubled in British Columbia from $ 1.6 billion to $ 3 billion in 2021.

According to Jack Newton, CEO and founder of Clio, Vlex, who was bought by the private equity company Oakley Capital in 2022, was invited until the purchase of the private equity company Oakley Capital in 2022.

Harvey, the Ki-Native Legal Tech Startup, tried to buy Vlex a year ago, but the acquisition did not come together. As reported by the information last July.

Vlex is a valuable property because its database can significantly improve KI models for lawyers with legal documents.

“The data is one of the few long -term, defensive competitive ditch that a company can have in the room,” Newton told Techcrunch.

Vlex competes with the legal database and lexisnexis in Thomson Reuters. The acquisition takes place shortly after Harvey A has been announced Partnership with lexisnexisThe aim of enriching Harveys Ki with lexisnexis data.

With the acquisition of Vlex, Clio, which provides law firms in terms of time, invoicing and electronic payment instruments, is now effectively entering legal practice itself.

In recent years, Vlex Vincent, a AI model, has built up on the company’s statutory content database.

“AI will drive a convergence of the historically different categories of software: the legal task and legal practice,” said Newton. He added that Clio’s clients in the small and medium -sized law firm segment will now have access to Vincents AI functions.

Clio not only announced the plans for the acquisition of Vlex, but also achieved 300 million US dollars for the annual recurring sales (ARR) of $ 300 million.