Wolters Kluwer Legal & Regulatory announced that it has signed an agreement to acquire Brightflag, a fast-growing cloud-based provider of AI-powered legal spend and matter management software, for approximately €425 million in cash.
The deal will enhance Wolters Kluwer Legal & Regulatory’s presence among mid-size corporations in the U.S. and Europe. Wolters Kluwer Legal & Regulatory ELM Solutions traditionally works with large corporations and their law firms.
Launched in 2014, Brightflag is an AI-based legal operations platform designed to streamline matter management, control legal spend, and enhance collaboration between corporate legal departments and outside counsel. And the company has 155 full-time employees who will join Wolters Kluwer’s Legal & Regulatory division.
Last year, Brightflag revenues increased 36% to reach approximately €22 million (un-audited). As of April 2025, the company had achieved €27 million in ARR (annual recurring revenue). Brightflag’s revenues are approximately 95% recurring in nature, with about 60% coming from U.S. customers.
The deal is expected to achieve a return on invested capital (ROIC) at or above Wolters Kluwer’s after-tax weighted average cost of capital (8%) in its fifth full year of ownership. For the near term, the acquisition is expected to have an immaterial impact on Wolters Kluwer’s adjusted earnings.
The deal is subject to customary closing conditions and is expected to be completed in June 2025.
KEY QUOTES:
“Today’s legal professionals require innovative solutions that drive greater efficiency while optimizing their legal matters and spend. We are excited to welcome Brightflag to Wolters Kluwer, where together we will continue to lead the way in AI-powered legal technology tailored to the evolving demands of corporate legal departments.”
Martin O’Malley, CEO of Wolters Kluwer Legal & Regulatory
“Since our founding, Brightflag has been committed to revolutionizing legal spend and matter management through AI-driven innovation. Wolters Kluwer shares our vision for leveraging advanced technology to enhance legal operations, and we look forward to working with the Wolters Kluwer Legal & Regulatory team to accelerate the future of legal solutions.”
Ian Nolan, CEO and Co-Founder of Brightflag
