Private equity firm Francisco Partners has agreed to invest in legal software platform Paradigm in a deal that valued the firm at US$400 million, people familiar with the matter told Reuters.
The deal is the latest bet on the legal technology sector from Francisco Partners, which earlier this year took online legal platform LegalZoom Inc. public. Francisco Partners remains one of the biggest shareholders in LegalZoom.
Under the Paradigm deal, current majority owner Alpine Investors will sell its entire stake to Francisco Partners, the sources said. The sources requested anonymity as the discussions are confidential.
New York-based Paradigm, formerly known as ASG LegalTech, offers a wide range of technology tools including PracticePanther, Bill4Time, MerusCase, and Headnote to law firms. Its practice management software and integrated payments solutions are used by 11,000 law firms.
The company grew rapidly during the COVID-19 pandemic, as remote working drove up demand for technology and software tools for law firms that are handling more cases and deals virtually.
Over the past month, tech-focused Francisco Partners has invested in software businesses such as SourceScrub, RugsUSA and Follett School Solutions. In September, the buyout firm sold its stake in payments firm NMI in a deal that valued the company at over US$1.5 billion.
(Reporting by Krystal Hu in New York; editing by Richard Pullin)