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Legal tech company receives significant investment
Thomson Reuters has partnered with TPG to establish legal tech company Elite as independent, in a move set to bring resources and focus to legal financial and practice management business to enable law firms to digitally transform.
Lauren Croft
Thomson Reuters has signed a definitive agreement with TPG for the telco to acquire a majority stake in Elite from Thomson Reuters, valuing the business at approximately US$500 million.
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The Elite business provides financial and practice management solutions to the world’s top law firms, helping customers automate and streamline critical finance and accounting workflows.
The agreement and added investment will allow the legal tech company to operate with greater focus, providing additional resources and expertise to accelerate growth and better support its customers as they digitally transform to meet the evolving needs of their clients. Upon closing of the transaction, TPG Capital, TPG’s US and European late-stage private equity business, will become the majority shareholder of the standalone business.
Thomson Reuters will retain a minority ownership stake in the business and have board representation, supporting Elite strategically going forward, according to Paul Fischer, president of Thomson Reuters’ legal professionals business.
“We feel strongly that the new investment from TPG, along with Thomson Reuters minority ownership and board representation, will position Elite to ensure our customers’ continued success,” he said.
“We remain committed to providing our expertise and experience to help grow Elite while dedicating greater focus and investment in the area of content-enabled technology, including AI and automated workflow solutions, to better enable customers in the practice of law and to perform their work more efficiently.”
Partner at TPG Tim Millikin added that the agreement would mean that Elite will be able to be enhanced moving forward.
“TPG has a history of investing in software companies that address the unique needs of vertical markets. We believe the legal industry is a market that is undergoing digital transformation, and Elite partners with leading firms on that journey,” he said.
“Elite’s trusted technology, strong customer base, and significant growth potential [have] made the company a clear leader among the best law firms, and we look forward to working with the team to enhance and expand the platform.”
Closing of the transaction is subject to specified regulatory approvals and customary closing conditions and is anticipated to occur in the second quarter of 2023. Baker McKenzie is serving as legal counsel to Thomson Reuters, and Davis Polk & Wardwell LLP is serving as legal counsel to TPG.
