Clio, the Canadian firm providing law practice management solutions, has agreed to purchase legal data intelligence provider vLex in a landmark $1 billion transaction that combines cash and stock.
The deal, announced on Monday, arrives approximately one year after Clio secured a notable $900 million funding round, which elevated its valuation from $1.6 billion in 2021 to $3 billion in 2024.
Founded 26 years ago, vLex was largely self-funded until its acquisition in 2022 by private equity group Oakley Capital. The platform’s extensive library of legal documents makes it especially attractive for developers creating AI-driven legal applications.
Jack Newton, Clio’s founder and CEO, described vLex as an increasingly coveted asset within the legal tech landscape. Last year, AI-focused startup Harvey unsuccessfully attempted to acquire vLex but later opted instead to partner with LexisNexis to integrate legal data into its platform.
Newton emphasized the competitive significance of data in the current AI landscape, noting that, “data remains one of the most enduring and defensible advantages a company can hold in this industry.”
With this acquisition, Clio—which currently offers law firms an extensive suite of tools including invoicing, time tracking, and electronic payments—is significantly broadening its capabilities, effectively bridging the conventional distinction between law practice management and direct involvement in legal practice itself.
In recent years, vLex expanded its technological portfolio with Vincent, an AI tool specifically trained on its proprietary legal content data. Newton points out that AI is accelerating the fusion of historically separate categories within legal technology. He underscored that Clio’s target customer base of small and medium-sized law firms will soon benefit from Vincent’s advanced AI functionalities.
Adding to its announcement, Clio revealed it has recently surpassed $300 million in annual recurring revenue.
