Acquisitions in the Legal Tech Sector in 2025

The following is a summary of mergers and acquisitions transactions expected in the legal tech sector in 2025. This article will be updated every two weeks as we work with more clients and learn of other deals in the sector.

The legal tech sector experienced a burst of interest in 2024 as artificial intelligence became a focal point for many tech-enabled businesses, and people quickly understood its applications in the legal field.

As a result, valuations for small, medium, and large legal tech companies have gone up significantly in the last 18 months and are higher than valuations for traditional businesses. The average small to medium-sized legal tech company is valued at 2x to 3x trailing twelve-month annual recurring revenue or 7x to 9x trailing twelve-month EBITDA.

Reported Acquisitions in the Legal Tech Sector in 2025

Below is a summary of the mergers and acquisition transactions in the legal tech in 2025. This is not an exhaustive list, as many smaller transactions are never announced. This list represents the deals we have learned about through our network or that we are directly involved in, and will be updated every two weeks.

In January

• Elevate, a provider of legal software and law firm support services, acquired Sagacious IP, a patent and intellectual property research company.
• Elite, a law firm business operations platform, acquired Tranch, a leading B2B invoice automation and payments platform offering invoice management and payment options for law firms and their clients.
• Onit, a no-code AI platform that automates enterprise legal workflows, acquired Legal Files, a legal case management software.
• SurePoint Technologies, a developer of cloud-based software for law firms’ financial management, acquired ZenCase, a legal software that automates law firm operations and tracking.
• The L Suite, a peer network of in-house legal executives, acquired Luminate+, an e-learning platform for in-house lawyers.
• ZwillGen, a law firm with various specialty technology practices, acquired Luminos.Law, a multidisciplinary firm that blends legal advisory services with data analytics, to help clients better understand and effectively deploy transformative artificial intelligence technology

Factors Driving Deal Activity

• Continued Consolidation: Expect to see continued consolidation in various segments of the legal tech market. This will be driven by companies seeking to expand their management teams, grow their product offerings, enter new markets, achieve economies of scale, and integrate emerging technology.
• Private Equity Activity: Private equity firms will remain active in the legal tech space. These firms will be looking for companies with strong growth potential and recurring revenue models. We can also expect to see larger deals involving established players in the market, as well as smaller acquisitions of emerging startups.
• Focus on AI and Emerging Technologies: While AI presents an existential risk for some traditional legal services businesses, law firms that that leverage artificial intelligence and other emerging technologies to improve client outcomes and lower costs will thrive.

About the Author and Jackim Woods & Co.

Rich Jackim is an legal tech industry investment banker, edtech entrepreneur, and former mergers and acquisitions attorney.

For the last 25 years, Rich has been providing boutique investment banking services to middle-market companies in a wide range of industries.

Rich also founded a successful training and certification company called the Exit Planning Institute, which he sold to a private equity group in 2012.

Rich is also the author of the critically acclaimed book, The $10 Trillion Dollar Opportunity: Designing Successful Exit Strategies for Middle Market Businesses.

Jackim Woods & Co offers skilled mergers and acquisitions advisory services to privately owned legal tech, court reporting, and litigation support companies in both sell-side and buy-side transactions. Jackim Woods & Co has arranged over 100 successful transactions, ranging from less than one million to more than eighty million dollars in value.

If you own an legal tech, court reporting, and litigation support business and are interested in exploring your options, I would welcome an opportunity to speak with you.

Feel free to contact me at 224-513-5142 or rjackim@jackimwoods.com.