In a surprising turn of events, global news and information powerhouse Thomson Reuters has announced its acquisition of legal research company Casetext for a staggering $650 million in cash. This strategic move is set to reshape the landscape of AI capabilities in the legal sector, with Thomson Reuters also committing to invest over $100 million annually in further enhancing its artificial intelligence offerings. The deal will see Thomson Reuters tap into Casetext’s innovative technology and talented team to revolutionize the way legal professionals work and the value they deliver.
Building on Success: Casetext’s Journey to the Top
Casetext, which recently celebrated its tenth anniversary, has been a trailblazer in harnessing the power of AI to elevate the practice of law. One of its most significant achievements was the development of CoCounsel, an AI legal assistant that streamlines tasks such as document review, legal research, and contract analysis. CoCounsel was built on OpenAI’s GPT-4 large language model, making Casetext the first legal tech company to publicly embrace OpenAI’s cutting-edge technology.
Thomson Reuters’ ‘Build, Partner, and Buy’ Strategy Takes a Leap Forward
Thomson Reuters’ President and CEO, Steve Hasker, sees the acquisition of Casetext as a crucial step in their strategy to provide groundbreaking generative AI solutions to their customers. The company aims to push the boundaries of innovation by continuing the development of new generative AI features across its suite of products. Notably, Thomson Reuters is also teaming up with Microsoft and Microsoft 365 Copilot to create a new plugin tailored specifically for legal professionals. This collaboration promises to leverage AI capabilities and transform the way legal work is conducted.
Unprecedented Collaboration and a Shared Vision
The collaboration between Thomson Reuters and Casetext holds immense promise, as both entities share a common mission to increase access to justice through the power of AI. According to Jake Heller, CEO of Casetext, joining forces with Thomson Reuters presents an extraordinary opportunity to amplify their mission and advance the field of generative AI solutions. This partnership will have a significant impact not only on the legal profession but across various industries, ensuring that the benefits of this revolutionary technology reach as many people as possible.
Looking Ahead: A Transformational Deal in the Making
While regulatory approvals and customary closing conditions must be met, the transaction is expected to be finalized in the second half of 2023. Until then, Casetext will continue to operate “business as usual,” according to a blog post by the company. The acquisition marks a significant turning point for the legal tech industry, propelling Thomson Reuters to the forefront of AI innovation in the legal field.
Rumors Confirmed: A Long-Awaited Announcement
Rumors about the acquisition first surfaced in late May, with Business Insider being the first to report on the potential deal. Both Thomson Reuters and Casetext chose to remain tight-lipped at the time, adhering to their policies against commenting on rumors or speculation. Now, with the official announcement, the legal tech community is buzzing with excitement about the game-changing possibilities that lie ahead.
The acquisition of Casetext by Thomson Reuters signals a paradigm shift in the legal field, where AI solutions are set to transform the way legal professionals operate. With this groundbreaking deal, Thomson Reuters solidifies its position as a leader in AI-driven innovations, poised to shape the future of law.
