Thomson Reuters (NYSE:TRI) announced today it has agreed to acquire California-based startup Casetext for $650 million in cash. The deal is expected to close in the second half of 2023.
Casetext is best known for its “CoCounsel” product, which is an AI legal assistant. CoCounsel is powered by OpenAI’s ChatGPT-4.
Thomson Reuters said the acquisition will enhance its current AI prospects and initiatives.
"The acquisition of Casetext is another step in our 'build, partner and buy' strategy to bring generative AI solutions to our customers," said Steve Hasker, president and CEO of Thomson Reuters.
"We believe that Casetext will accelerate and expand our market potential for these offerings - revolutionizing the way professionals work, and the work they do."
BofA analysts weighed in positively on TRI’s proposed acquisition.
“We think this acquisition significantly advances TRI’s already strong competitive positioning and its ability to advance its AI strategy, which has been a key investor debate. Casetext’s customers include 10,000+ law firms and corporate legal departments. TRI management has spoken positively in the past about the CoCounsel product and we have garnered a favorable impression of the product from our recent expert calls,” they said in a client note.
The analysts rate TRI stock as Buy with a $157 per share price target.