Thomson Reuters, a global content and technology company, announced that it has entered into a definitive agreement to acquire Casetext, a California-based provider of technology for legal professionals.
The cash deal, valued at $650 million, will further enhance Thomson Reuters’ existing AI roadmap and strengthen its position in the legal tech industry.
Casetext, founded in 2013, has been at the forefront of legal AI innovation, leveraging advanced AI and machine learning to develop technology solutions for legal professionals. Their products aim to increase efficiency and improve the quality of legal representation. With 104 employees, Casetext currently serves over 10,000 law firms and corporate legal departments.
One of Casetext’s significant achievements is gaining early access to OpenAI’s GPT-4 large language model. This collaboration has allowed them to refine their use cases for legal professionals and develop key products like CoCounsel. CoCounsel, launched in 2023 and powered by GPT-4, is an AI legal assistant that provides document review, legal research memos, deposition preparation, and contract analysis in minutes.
The acquisition of Casetext aligns with Thomson Reuters’ strategy of bringing generative AI solutions to its customers through a combination of building, partnering, and acquiring innovative companies. This move builds on the company’s recent commitment to invest over $100 million annually in AI capabilities and its collaboration with Microsoft and Microsoft 365 Copilot to develop new generative AI experiences for legal professionals.
Steve Hasker, president and CEO of Thomson Reuters, expressed his excitement about the acquisition, stating, “We believe that Casetext will accelerate and expand our market potential for these offerings – revolutionizing the way professionals work, and the work they do.” The acquisition is expected to revolutionize the legal field and have a far-reaching impact across various professions.
Jake Heller, CEO of Casetext, also shared his enthusiasm about joining Thomson Reuters, emphasizing the opportunity to advance their mission and the field of generative AI solutions. He said, “Joining Thomson Reuters is an incredible opportunity to advance our mission and the field of generative AI solutions exponentially, not only for lawyers but across professions, ensuring this revolutionary technology can benefit as many people as possible.”
The transaction is subject to regulatory approvals and customary closing conditions. The closing is anticipated to take place in the second half of 2023.
