Thomson Reuters Acquires AI-Based Legal Tech Startup Casetext for a Cash Deal of $650M
“The acquisition of Casetext is another step in our ‘build, partner and buy’ strategy to bring generative AI solutions to our customers,” Thomson Reuters CEO Steve Hasker said.
Acquisition Info:
Thomson Reuters has officially confirmed its intention to purchase Casetext, a legal tech startup backed by Y Combinator, in a cash transaction valued at $650 million. Subject to regulatory approvals and the satisfaction of other closing conditions, the acquisition is slated for completion in the latter half of 2023. Steve Hasker, CEO of Thomson Reuters, in a prepared statement expressed that the acquisition represents a significant stride in their 'build, partner and buy' approach to integrate generative AI solutions for their client base. He emphasized the belief that Casetext will fast-track and enhance their market prospects for such offerings, thereby revolutionizing the professional workspace. Casetext, with a workforce of 104, serves a clientele that includes over 10,000 law firms and corporate legal departments. Prior to the impending acquisition, the startup had managed to raise over $64 million, with Union Square Ventures among its investors. For Thomson Reuters, the Casetext acquisition aligns with their long-term strategy to incorporate generative AI across its principal business sectors, namely legal, tax, accounting, and news. The company has also recently declared its plans to allocate around $100 million annually towards AI and to integrate generative AI into its product suite in the second half of this year. Furthermore, it has earmarked $10 billion for potential mergers and acquisitions with a particular focus on AI, through 2025.
About Casetext:
Casetext is a pioneering company in the field of legal technology, led by a team of accomplished attorneys and technologists. The company's mission is to leverage artificial intelligence (AI) to improve the practice of law and expand access to justice for all. Founded by a group of technology-driven attorneys from leading law firms, Casetext aims to help attorneys provide excellent representation to their clients more efficiently and affordably. Over a decade since its inception, Casetext has emerged as a leader in legal AI, with its founding members gaining global recognition for their contributions to the field. The company's latest innovation, CoCounsel, is a testament to its ongoing commitment to creating tools that advance the practice of law and broaden access to justice. The leadership team includes CEO Jake Heller, a former litigator at Ropes & Gray and a Stanford Law School alumnus, who has been named to Forbes 30 Under 30 and the Fastcase 50 for legal innovation. Laura Safdie, the COO & General Counsel, is a former civil litigator at Simpson Thacher & Bartlett and a Yale Law School graduate. She has been recognized as one of the Top Women Leaders in Tech Law in California. Pablo Arredondo, the Chief Innovation Officer, is a former patent litigator at Kirkland & Ellis and Quinn Emanuel, and a fellow at the Stanford Center for Legal Informatics. His innovations have been acknowledged by the World Economic Forum, the American Association of Law Libraries, and the American Bar Association.
About Thomson Reuters:
Thomson Reuters is a leading global organization that specializes in providing professionals across various industries with the intelligence, technology, and human expertise they need to find trusted answers. The company plays a pivotal role in modernizing the foundational pillars of society, including the tax and legal professions, the free press, commerce, and the rule of law. This modernization is achieved through digitalization, which is aimed at enhancing the way professionals and institutions operate. The company operates under its Trust Principles, which serve as a guiding light for its mission and operations. These principles underscore the company's commitment to providing industry expertise, advanced technology, and high-quality content that empowers professionals and institutions. This empowerment enables them to solve complex problems and make difficult decisions with confidence, even in an increasingly complex environment. Thomson Reuters is known for its innovative approach to automating mundane tasks, delivering valuable insights, and driving efficiencies that have meaningful benefits. By taking over routine tasks, the company allows its customers to focus more on their own customers, thereby improving their service delivery. This approach not only enhances productivity but also contributes to the growth and success of their customers. The company's commitment to elevating professional work through digitalization is a testament to its dedication to progress and innovation. By providing the tools and resources needed to navigate the complexities of various industries, Thomson Reuters is playing an integral role in shaping the future of professional work.
