Presented by:
Jim Stone, Partner
AGC Partners
Sean Tucker,Partner
Ben Howe, CEO
TITLE
Legal & Compliance Tech Market Update
resete
y:
Jim Stone, Partner
Steven Willis,Partner
Tristan Snyder, Partner
Mike Parker, Partner
February 2022
Executive Summary
Market Outlook: The global legal and compliance tech market, estimated at ~$8B in size, is poised
for explosive growth in the years ahead as legal and compliance teams fully embrace digitalization
and automation tooling
›
IT is massively under deployed at just 1.8% of total law firm revenues. This compares to 10%+
for banking and 4%+ on average for other industry sectors
› The growing volume of metadata and millions of documents that are managed by corporate law
departments and litigators will continue to drive the need for technology adoption and increase
spend as a percentage of revenue
› Work-from-home migration during the pandemic further accelerated the digital shift, though
penetration of digital tools for workflow and information management remains low
Market Technology Trends: Legal tech solutions increasingly revolve around real time data access
to contain costs, increase automation and improve outcomes, while Compliance tech is increasingly
deployed to safeguard massive amounts of data brought about by new privacy regulations
› AI /ML technologies, once emerging, are now entering the mainstream to automate services
such as eDiscovery, Contract Management and Compliance Surveillance
Capital Markets & M&A Trends: Both capital raised and M&A deals hit all time highs that far
surpass the 2020 levels
› Financing into private Legal tech companies is now pouring in with total capital raised in 2021
almost double the 2019 and 2020 totals
› M&A activity has also seen a lockstep change to unprecedented levels over the last year with
total M&A volume increased by 71% to 214 deals
› Notable large transactions include OMER’s $1.5B acquisition of Mitratech and Warburg’s $1.4B
deal for NetDocuments at an iconic 35x revenue multiple
With over