Thomson Reuters Acquires Casetext, an AI Legaltech Company, for $650 Million in Cash
Thomson Reuters has recently announced its acquisition of Casetext, a California-based legal technology provider, in a definitive agreement worth $650 million in cash. This move is a strategic addition to Thomson Reuters’ existing AI roadmap, enhancing its commitment to investing over $100 million annually in AI capabilities. The acquisition also builds on the company’s recent initiatives, such as developing new generative AI experiences across its product suite and collaborating with Microsoft on the Microsoft 365 Copilot plugin for legal professionals.
Casetext, established in 2013, has been at the forefront of leveraging advanced AI and machine learning technologies to create innovative solutions for legal professionals. By harnessing AI, Casetext empowers legal experts to work more efficiently and deliver higher-quality representation to a broader clientele. The company, with 104 employees, serves over 10,000 law firms and corporate legal departments.
A significant factor contributing to Casetext’s success has been its early access to OpenAI’s GPT-4 large language model. This access enabled Casetext to develop cutting-edge solutions and refine use cases specifically tailored for legal professionals. One of its flagship products, CoCounsel, was launched in 2023, driven by GPT-4’s power. CoCounsel is an AI legal assistant capable of providing document review, legal research memos, deposition preparation, and contract analysis in minutes.
Steve Hasker, President, and CEO of Thomson Reuters, expressed excitement about the acquisition, stating that Casetext’s addition aligns with their ‘build, partner, and buy’ strategy for bringing generative AI solutions to their customers. He believes Casetext’s expertise will accelerate and expand its market potential, transforming the way professionals work and the services they provide.
Jake Heller, CEO of Casetext, also shared enthusiasm about joining forces with Thomson Reuters. He explained that for the past decade, their focus has been on leveraging AI to enhance law practice and make legal services more accessible. Partnering with Thomson Reuters provides an incredible opportunity to further their mission and advance generative AI solutions across various professions, ensuring that this revolutionary technology benefits a wide range of people.
The acquisition of Casetext by Thomson Reuters marks a significant step towards advancing the field of AI-driven legal technology and promises to revolutionize the way professionals serve their clients, paving the way for broader access to justice.
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