Clio Purchases Legal Data Giant vLex for $1 Billion

On Monday, Clio, a 17-year-old Canadian company that specializes in law firm management software, announced its plan to acquire vLex, a 26-year-old platform focused on legal data intelligence, in a deal valued at $1 billion in cash and stock.

This announcement comes after Clio’s substantial $900 million funding round last year, which nearly doubled its valuation, increasing from $1.6 billion in 2021 to $3 billion, with headquarters in Vancouver, British Columbia.

Jack Newton, CEO and founder of Clio, mentioned that vLex has been an appealing target, having been largely bootstrapped until its acquisition by private equity firm Oakley Capital in 2022.

Harvey, an AI-driven legal tech startup, previously attempted to acquire vLex a year ago, but that deal ultimately did not go through, as reported by The Information last July.

The true value of vLex lies in its extensive database of legal documents, which can significantly enhance AI models for legal professionals.

“Data is one of the few long-term defensible competitive advantages a company can have in this industry,” Newton stated in an interview with TechCrunch.

vLex competes with the legal databases owned by Thomson Reuters and LexisNexis. This acquisition comes shortly after Harvey announced a partnership with LexisNexis to enhance its AI using their data.

With the acquisition of vLex, Clio, which provides law firms with services such as time-tracking, invoicing, and electronic payment solutions, is effectively stepping into the realm of legal practice.

In recent years, vLex has developed Vincent, an AI model that utilizes the company’s comprehensive legal content database.

“AI is set to merge what have traditionally been distinct software categories: the business of law and the practice of law,” Newton noted. He emphasized that Clio’s small to medium law firm clients will soon be able to benefit from Vincent’s AI capabilities.

Alongside the acquisition news, Clio also announced that it has reached an annual recurring revenue (ARR) of $300 million.