Canadian legaltech firm Clio has grown its annual recurring revenue (ARR) to $500m, supported by the release of its Intelligent Legal Work Platform last year and the $1bn acquisition of legal intelligence provider vLex.
Jack Newton, CEO and founder of Clio, said: “What $500m in ARR reflects is hundreds of thousands of legal professionals, who looked at the AI solutions available and chose Clio’s Intelligent Legal Work Platform, built on the deepest foundation of legal data in the industry.
“The firms that make that decision today, will be the ones defining what legal looks like a decade from now.”
In addition to last November’s $1bn deal to buy vLex – one of the largest transactions on record in the legaltech industry – last March Clio agreed to acquire UK-based cloud case management provider ShareDo, which it recently rebranded as Clio Operate.
Clio’s acquisition of Barcelona-based vLex has allowed it to add legal research capabilities to its practice management software. Combined with AI-powered drafting tools, these now form the core of its Intelligent Legal Work Platform, launched last October. At the same time, Clio – best known for serving small and medium-sized law firms – created a large law firm division called Clio for Enterprise.
Clio also raised $500m in a Series G funding round that coincided with the vLex deal in November, valuing the business at $5bn.
The round was led by venture capital firm New Enterprise Associates, alongside existing investors: TCV, Goldman Sachs Asset Management, Sixth Street Growth, and JMI Equity.
Clio also secured a $350m debt facility underwritten by Blackstone and funds managed by Blue Owl Capital.
Newton added: “The pace at which Clio has advanced its platform over the past six months is without precedent in Clio’s history, spanning new products, expanded capabilities and AI advancements that have fundamentally changed what legal professionals can accomplish.
“That velocity is not slowing. We have total conviction, resources and the urgency to match this moment. And we intend to.”
The Vancouver-based firm is planning to open a New York office in the second half of this year as it seeks to further expand its international footprint, according to the Financial Post.
Its current offices are spread across Toronto, Calgary, London, Manchester, Dublin, Sydney, Barcelona and Bogotá.
Newton founded Clio in 2008. The company says it serves hundreds of thousands of legal professionals across 130 countries.
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