Clio Buys AI Legal Software Firm vLex for $1 Billion to Challenge Industry Giants

Clio Acquires AI Legal Software Company vLex for $1 Billion

Clio, one of Canada’s largest private legal software companies, has made a major move by acquiring vLex LLC for US$1 billion. This marks Clio’s second transformative acquisition in 2025, doubling its potential market for the second time this year. The Burnaby, B.C.-based company, officially known as Themis Solutions Inc., is expanding beyond its core practice management software into AI-powered legal research.

vLex develops an artificial intelligence tool that helps lawyers avoid citing fake court rulings, a critical issue as AI-generated content becomes more common in legal work. This acquisition positions Clio to compete directly with legal software giants like Thomson Reuters Corp. and Relx PLC’s LexisNexis unit.

Integrating Practice Management and Legal Research AI

Jack Newton, Clio’s CEO, explained the strategic vision behind the acquisition: “We are reforming the company and reshaping it with AI at its heart. It puts us on an entirely new trajectory.” The deal combines Clio’s existing law firm operating system with vLex’s extensive AI-driven legal research capabilities, effectively bringing “the business of law and the practice of law capability under one roof.”

Clio’s platform currently helps lawyers manage scheduling, billing, bookkeeping, client onboarding, and document management through the cloud. With over 200,000 lawyers using Clio worldwide, this acquisition significantly broadens the company’s scope.

About vLex and Its AI Capabilities

Founded in 2000 by brothers Lluís and Angel Faus, vLex maintains a global legal library with more than one billion legal documents. It expanded its reach in 2023 by merging with Washington-based Fastcase, gaining access to over one million U.S. lawyers. vLex’s AI tool, named Vincent, acts as a virtual legal assistant that can read cases, generate research memos, build arguments, and draft documents—all while citing authoritative case law to avoid AI “hallucinations” or fabricated references.

Vincent is designed to be a reliable AI tool that lawyers can trust to produce accurate, citation-grounded outputs. This addresses a growing concern about AI tools generating fictional cases, which has caused issues for lawyers in court filings.

• Automatically reads and analyzes legal cases
• Generates research memos and argument outlines
• Flags potential legal issues
• Ensures citations are based on real case law

Market Impact and Financing

The acquisition was finalized through a definitive agreement with Oakley Capital, the European private equity firm that owned vLex. Clio competed against other bidders, including San Francisco-based Harvey, which recently formed a strategic alliance with LexisNexis.

Analysts suggest this deal could shift the competitive dynamics within the legal software market. Scott Fletcher of CIBC Capital Markets noted that both Clio and Harvey’s AI investments may push Thomson Reuters to accelerate its product improvements.

Clio’s CEO declined to disclose the exact financing details for the deal but confirmed the company has strong financial backing from investors such as New Enterprise Associates, Goldman Sachs Asset Management, and T. Rowe Price Associates. Clio reported annual recurring revenue of US$300 million before this acquisition.

What This Means for Legal Professionals

For legal professionals, Clio’s acquisition of vLex signals a deeper integration of AI tools within everyday legal practice management and research. Lawyers can expect more seamless access to AI-powered legal research that reduces the risk of citing incorrect or fabricated case law.

This move reflects a broader trend of AI adoption in the legal sector, where accurate, citation-based AI tools are gaining traction. For those interested in AI’s growing role in legal work, exploring specialized AI training can be valuable. Resources like Complete AI Training’s latest AI courses offer practical insights into AI applications tailored for various professional fields.

Next Steps

The deal between Clio and vLex is expected to close later this year. Clio was advised by Goldman Sachs and several law firms, while vLex worked with J.P. Morgan on the transaction.

As AI continues to influence legal software development, keeping informed about such acquisitions can help legal professionals evaluate new tools and adapt to evolving technology in their practice.