Thomson Reuters sets new AI milestone with $650m Casetext acquisition

Global content and technology powerhouse, Thomson Reuters Corporation, today revealed that it has inked a definitive agreement to purchase Casetext, a California-headquartered technology provider for legal professionals.

The cash deal, valued at $650 million, will fortify Thomson Reuters’ existing AI roadmap and complement its recent AI initiatives.

This acquisition forms a significant part of Thomson Reuters’ wider commitment to advance AI technology, as evidenced by its pledge to invest over $100 million annually on AI capabilities. Furthermore, the acquisition will contribute to the development of new generative AI experiences across the company’s product suite, and strengthen its collaborative efforts with Microsoft, particularly through a new plugin with Microsoft 365 Copilot designed for legal professionals.

Steve Hasker — Thomson Reuters president and CEO said: “The acquisition of Casetext is another step in our ‘build, partner and buy’ strategy to bring generative AI solutions to our customers.

“We believe that Casetext will accelerate and expand our market potential for these offerings – revolutionizing the way professionals work, and the work they do.”

Thomson Reuters to acquire legal tech firm Casetext for $650m. Photo courtesy of Jason Zhang/Wikimedia Commons.

Casetext, established in 2013, has made its name by leveraging advanced AI and machine learning to develop technology that improves efficiency and quality of representation in the legal field. With a workforce of 104 employees, Casetext serves a customer base of over 10,000 law firms and corporate legal departments.

The legal tech firm has been granted early access to OpenAI’s GPT-4 large language model, enabling it to create and refine solutions for legal professionals using this cutting-edge technology. One of its standout products is CoCounsel, an AI legal assistant launched in 2023 and powered by GPT-4. CoCounsel provides swift and efficient document review, legal research memos, deposition preparation, and contract analysis.

Jake Heller — Casetext CEO said: “For the last ten years, we have harnessed the power of AI to build products that elevate the practice of law and enable attorneys to serve more people’s legal needs, with the ultimate goal of increasing access to justice.

“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 completion of this transaction hinges on obtaining specified regulatory approvals and fulfilling customary closing conditions. The deal is expected to close in the second half of 2023, marking a pivotal moment in the AI roadmap of Thomson Reuters.