Clio paid $1 billion for vLex to merge practice-management software with a vast digital legal research library enhanced by generative AI. Clio serves roughly 200,000 users, primarily solo and small-firm attorneys, and has recently accelerated growth to a $3 billion valuation by adding about $100 million in revenue annually. vLex offers deep repositories of case law and AI search tools that position it as a rare challenger to long-established research providers LexisNexis and Westlaw. The acquisition targets two objectives: moving Clio upstream into Big Law and chipping away at the entrenched legal-research duopoly, but observers remain skeptical about those prospects.
For nearly two decades, it's sold the unglamorous software that law firms use to send invoices and track cases. The $3 billion company has enjoyed a recent growth spurt, adding $100 million in revenue annually for two straight years. The company it scooped up, vLex, is a different animal: a pioneer in legal research and the closest thing yet to a serious rival to LexisNexis and Westlaw, both deep repositories of case law.
As Clio founder and chief executive Jack Newton put it, Clio handles the business of law; vLex covers the practice of law. Together, they're pitching an all-in-one stack for lawyers. Based on conversations with nine people, including three Clio leaders and three competitors, the acquisition is really chasing two goals. One is to climb upstream into Big Law - a long shot, by many accounts. The other is to chip away at the duopoly in legal research.
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