LexisNexis, a legal research company, announced on Monday that it has acquired Lex Machina, a litigation analytics platform.
Terms of the transaction were not disclosed, but a source familiar with the deal said that Lex Machina has somewhere between $5 to $8 million in annual revenue. It was seeking to be bought for $30 to $35 million, this person said.
Lex Machina, founded in 2010, provides analytics primarily around IP litigation, mining data about judges, lawyers, parties and patents to inform lawyers’ litigation strategy, according to the company’s web site.
With the transaction, which closed on Friday, Lex Machina will retain its management structure and name. Effective immediately, it has become a wholly owned subsidiary of LexisNexis, according to Lex Machina CEO Josh Becker.
Becker said Lex Machina will gain access to LexisNexis legal content, which includes federal court filings, and will use it to expand Lex Machina’s analytics services outside of its core focus of intellectual property: into commercial, securities, tort, and other areas.
“That is why we are doing this deal,” said Becker, noting that the discussions with LexisNexis extend back to February.
LexisNexis, which provides business research and risk management services outside its legal research offerings, is a competitor of Bloomberg Law, which is owned by Bloomberg BNA, the publisher of Big Law Business.
The legal technology community has been buzzing about the purchase since last week.
Robert Ambrogi, a legal blogger, wrote Monday morning:
“The company is said to have been shopping itself to potential buyers for several months. Some Lex Machina employees have reportedly told others they will be out of their jobs effective this week.”
Becker, however, refuted that any Lex Machina employees were out of the job, saying there were no layoffs in the acquisition. “Literally, every single person is joining.”
(UPDATED: This article has been updated with additional deal information)