Wolters Kluwer to Acquire Brightflag for €425 Million

Wolters Kluwer has announced its acquisition of Brightflag, a cloud-based provider of AI-powered legal spend and matter management software, for approximately €425 million in cash. This acquisition, announced in a press release, aims to strengthen Wolters Kluwer's presence among mid-size corporations in the U.S. and Europe.

Founded in 2014, Brightflag offers an AI-powered legal operations platform designed to streamline matter management and control legal spend. The company, which has 155 full-time employees, will join Wolters Kluwer's Legal & Regulatory division. The acquisition is expected to be completed in June 2025, subject to customary closing conditions.

Brightflag's revenues increased by 36% in 2024, reaching approximately €22 million, with a significant portion of its revenue being recurring and primarily from U.S. customers. The acquisition is projected to achieve a return on invested capital at or above Wolters Kluwer's after-tax weighted average cost of capital in its fifth year of ownership.