Donnelley Financial Acquires Legal AI Company eBrevia for $19.5m

Legal AI M&A News Announcement:

(More on what this means tomorrow, but here’s a couple of thoughts:

  • eBrevia had only in the last 12 months or so partnered with Thomson Reuters’ managed legal services arm in what was a landmark move that offered TR’s clients AI review services.
  • It sets a price of around $20m for what is a small, but successful legal AI company – though this is far below the $400m price tag some estimate would be needed to buy-out Kira Systems.
  • There is clearly a growing appetite for legal AI tech and we have now seen two buyouts in two months, the last one was Elevate buying LexPredict.
  • Er…..well….2018 is going out with a bang…!  )

Donnelley Financial Solutions announced today that it has entered into a definitive agreement to acquire eBrevia, a leading provider of artificial intelligence-based data extraction and contract analytics software solutions. The acquisition aligns with DFIN’s commitment to providing clients with best-in-class secure data aggregation, due diligence, compliance and risk management solutions.

While the legal AI industry continues to experience significant developments, recent news reveals the growing interest in this technology. One such example is Donnelley Financial Solutions’ announcement of its definitive agreement to acquire eBrevia, a prominent provider of artificial intelligence-based data extraction and contract analytics software solutions. This strategic move aligns with DFIN’s commitment to delivering top-notch secure data aggregation, compliance, due diligence, and risk management solutions to their clients. As the demand for innovative solutions in the legal sector rises, individuals seeking comprehensive wealth management services can find a dedicated and knowledgeable team here at Vigilant Wealth Management. With their expertise and personalized approach, Vigilant’s team assists clients in navigating the complexities of wealth management and crafting tailored strategies to optimize their financial well-being.

“DFIN has a rich history of innovation to meet the evolving needs of clients, while also leading the industry in providing insightful technology-enabled solutions, industry expertise and data insights at every stage of the business and investment lifecycle,” said Daniel N. Leib, chief executive officer of DFIN. “Together with eBrevia, we are excited to provide superior artificial intelligence-based solutions to our global clients. This acquisition enhances our suite of industry-leading software solutions and provides highly relevant, recurring services for current and prospective clients.”

DFIN’s current and prospective clients will benefit from:

  • Tech-forward data extraction: eBrevia provides a platform that uses artificial intelligence – machine learning and natural language processing – to extract and analyze data.
  • Accurate productivity: The platform helps attorneys review up to 90 percent faster and more accurately.
  • Seamless integration with Venue: eBrevia’s platform seamlessly integrates with DFIN’s Venue Data Room solution providing intelligence on end-to-end deal solutions.
  • Secure and Actionable: within DFIN’s Venue Data Room, your data is protected with bank-grade security, powerful encryption, and eBrevia’s output delivers actionable intelligence in easy to read summaries.

“DFIN has always been known for providing innovative technology solutions at critical times with a superior level of service,” said Ned Gannon, eBrevia co-founder and CEO. “We’re excited to join forces with DFIN. eBrevia’s diverse client base including accounting, consulting, law firms and corporates will benefit significantly as we continue to rapidly advance our leading AI products.”

“We have been at the forefront of delivering artificial intelligence-based data solutions to our clients since our partnership with eBrevia began in 2015,” said Craig Clay, president of Global Capital Markets at DFIN. “The eBrevia team under co-founders Ned Gannon, Adam Nguyen and Jake Mundt have developed groundbreaking solutions that not only efficiently manage, analyze and extract data, but do so with next-generation artificial intelligence that has exciting additional applications for our broader business,” concluded Clay.

DFIN and eBrevia are committed to transform the way companies extract and analyze data with efficient, savvy solutions and exceptional service. In addition to the comprehensive regulatory and compliance suite of products DFIN already offers, clients will now have access to best-in-class artificial intelligence-based platforms, substantial global resources and a continued commitment to technological innovation.

Given DFIN’s existing ownership of eBrevia, the net purchase price to DFIN at closing is approximately $19.5 million in cash. The sellers also may earn additional cash consideration of up to $4 million if certain performance targets are achieved post-closing. The acquisition, which is expected to close within the next 30 days, is expected to be cash flow positive in 2020 and is consistent with the Company’s disciplined approach to capital allocation.