It is a day of major legal tech deals. Following news earlier today of the merger of Fastcase and vLex, now comes news from Thomson Reuters that it is selling off a majority stake in Elite, its suite of law practice management and financial products for larger law firms, to TPG, a global asset management firm, making Elite a standalone legal technology business.
TR said it has signed a definitive agreement with TPG for it to acquire a majority stake in Elite, valuing the business at approximately $500 million.
“The transaction will enable Elite to operate with greater focus, providing additional resources and expertise to accelerate growth and better support its customers as they digitally transform to meet the evolving needs of their clients,” TR said in announcing the sale.
Upon closing of the transaction, TPG Capital, TPG’s U.S. and European late-stage private equity business, will become the majority shareholder of the standalone business. Thomson Reuters will retain a minority ownership stake in the business and have board representation, supporting Elite strategically going forward.
“We feel strongly that the new investment from TPG, along with Thomson Reuters minority ownership and board representation, will position Elite to ensure our customers’ continued success,” said Paul Fischer, president of the Legal Professionals business of Thomson Reuters. “We remain committed to providing our expertise and experience to help grow Elite while dedicating greater focus and investment in the area of content-enabled technology, including AI and automated workflow solutions, to better enable customers in the practice of law and to perform their work more efficiently.”
“TPG has a history of investing in software companies that address the unique needs of vertical markets. We believe the legal industry is a market that is undergoing digital transformation, and Elite partners with leading firms on that journey,” said Tim Millikin, partner at TPG. “Elite’s trusted technology, strong customer base, and significant growth potential has made the company a clear leader among the best law firms, and we look forward to working with the team to enhance and expand the platform.”
Elite’s suite of products is led by its flagship offering 3E and also includes ProLaw, eBillingHub, and MatterSphere, all aimed at improving law firm finance and accounting operations, including billing, invoicing, payments, and financial reporting. Elite will maintain existing integrations with Thomson Reuters products.
Closing of the transaction is subject to regulatory approvals and closing conditions and is anticipated to occur in the second quarter of 2023, TR said.
Leave a Reply