Wolters Kluwer to acquire global legal software provider Brightflag

Core Viewpoint - Wolters Kluwer has signed an agreement to acquire Brightflag for approximately €425 million, aiming to enhance its presence in the mid-size corporate legal market in the U.S. and Europe [1][3]. Company Overview - Wolters Kluwer is a global leader in information solutions and services across various sectors, including legal and regulatory, with reported annual revenues of €5.9 billion in 2024 [4][5]. - Brightflag, founded in 2014, specializes in AI-powered legal operations, focusing on matter management and legal spend control, and has approximately 155 employees [2][7]. Financial Performance - Brightflag's revenues increased by 36% in 2024, reaching approximately €22 million, with an annual recurring revenue (ARR) of €27 million as of April 2025 [3]. - The acquisition is expected to achieve a return on invested capital (ROIC) at or above 8% in its fifth year of ownership, with an immaterial impact on Wolters Kluwer's adjusted earnings in the near term [3]. Strategic Intent - The acquisition aligns with Wolters Kluwer's strategy to provide innovative solutions that enhance efficiency and optimize legal operations for corporate legal departments [3]. - Both companies share a vision of leveraging advanced technology to improve legal operations, indicating a strong strategic fit [3].