Wolters Kluwer Legal & Regulatory 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 acquisition will strengthen Wolters Kluwer Legal & Regulatory’s presence among mid-size corporations in the U.S. and Europe. Wolters Kluwer Legal & Regulatory ELM Solutions traditionally serves large corporations and their law firms. Founded in 2014, Brightflag is an AI-powered legal operations platform designed to streamline matter management, control legal spend, and enhance collaboration between corporate legal departments and outside counsel. The company has 155 full-time employees who will join Wolters Kluwer’s Legal & Regulatory division.
Martin O’Malley, CEO of Wolters Kluwer Legal & Regulatory: “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."
Ian Nolan, CEO and Co-Founder of Brightflag: “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.”
In 2024, Brightflag revenues increased 36% to reach approximately €22 million (un-audited), and, as of April 2025, the company had attained €27 million of ARR (annual recurring revenue). Brightflag revenues are approximately 95% recurring in nature and approximately 60% from U.S. customers. The acquisition 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. In the near term, the acquisition is expected to have an immaterial impact on Wolters Kluwer adjusted earnings. The transaction is subject to customary closing conditions and is expected to be completed in June 2025.