Thomson Reuters announced that it's set to acquire Casetext, a legal tech startup providing Generative AI for legal professionals, for an all-cash transaction of $650 million.
Last month, Thomson Reuters’ CFO, Michael Eastwood, hinted at the company's strong interest in AI with plans to pour roughly $100 million a year into AI advancements.
Casetext has earned recognition in the legal tech space through its AI legal assistant, CoCounsel, launched in 2023. Powered by OpenAI's advanced GPT-4 model, CoCounsel streamlines legal tasks such as document reviews, legal research memos, deposition preparations, and contract analysis, all completed within minutes, as per a Thomson Reuters statement.
Benefiting from early access to OpenAI’s GPT-4, Casetext has been at the forefront of leveraging this technology to refine and develop practical solutions for the legal profession. The California-based firm, with a workforce of 104 employees, boasts over 10,000 customers comprising law firms and corporate legal departments.
"The Casetext acquisition is our latest stride in delivering generative AI solutions to our customers," said Steve Hasker, President and CEO of Thomson Reuters.
The deal is anticipated to finalize in the latter half of 2023, subject to specific regulatory approvals and closing conditions.
The media conglomerate has made multiple strategic acquisitions in the legal and accounting domains. In January, they acquired SurePrep, LLC, a US firm specializing in 1040 tax automation software and services, for $500 million in cash. In 2019, they acquired HighQ, a collaboration platform for the legal and regulatory market. A year prior, they purchased Confirmation.com, a provider of secure audit confirmation services.
