Thomson Reuters, the Canada-based business information services provider, has agreed to purchase AI-powered legal tech startup Casetext in a cash deal worth $650 million. The agreement, which is subject to regulatory approval, is expected to close during the second half of 2023.
Founded in 2013, Casetext uses advanced AI and machine learning to build technology for legal professionals, creating solutions designed to help them work more efficiently and provide higher-quality representation to more clients. Casetext employs about 100 people, and its customers include more than 10,000 law firms and corporate legal departments, according to a news release.
Casetext was granted early access to OpenAI’s GPT-4 large language model, allowing it to develop solutions with the new technology and refine use cases for legal professionals. Its key products include CoCounsel, an AI legal assistant launched in 2023 and powered by GPT-4 that delivers document review, legal research memos, deposition preparation and contract analysis.
“The acquisition of Casetext is another step in our ‘build, partner and buy’ strategy to bring generative AI solutions to our customers,” Steve Hasker, president and CEO of Thomson Reuters, said in the news release. “We believe that Casetext will accelerate and expand our market potential for these offerings — revolutionizing the way professionals work and the work they do.”