Wolters Kluwer to acquire global legal software provider Brightflag

Rhea-AI Summary

Wolters Kluwer Legal & Regulatory has agreed to acquire Brightflag, an AI-powered legal software company, for €425 million in cash. Brightflag, founded in 2014, specializes in cloud-based legal spend and matter management software, with 155 employees joining Wolters Kluwer post-acquisition. The company demonstrated strong growth with a 36% revenue increase in 2024, reaching €22 million, and €27 million in annual recurring revenue by April 2025. Notably, 95% of Brightflag's revenue is recurring, with 60% coming from U.S. customers. The acquisition aims to strengthen Wolters Kluwer's presence in mid-size corporations across the U.S. and Europe, complementing their existing focus on large corporations. The deal is expected to close in June 2025.

Positive

• Strong revenue growth with 36% increase in 2024
• High-quality revenue with 95% recurring nature
• Established U.S. market presence with 60% of revenue from U.S. customers
• Strategic expansion into mid-size corporate market segment
• AI-powered technology enhancing existing legal solutions portfolio

Negative

• Significant cash outlay of €425 million required
• Return on investment (ROIC) expected only after 5 years
• Immaterial impact on adjusted earnings in the near term

PRESS RELEASE                                        

Wolters Kluwer to acquire global legal software provider Brightflag

Alphen aan den Rijn – May 29, 2025 – 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.

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About Wolters Kluwer
Wolters Kluwer (EURONEXT: WKL) is a global leader in information solutions, software and services for professionals in healthcare; tax and accounting; financial and corporate compliance; legal and regulatory; corporate performance and ESG. We help our customers make critical decisions every day by providing expert solutions that combine deep domain knowledge with technology and services.

Wolters Kluwer reported 2024 annual revenues of €5.9 billion. The group serves customers in over 180 countries, maintains operations in over 40 countries, and employs approximately 21,900 people worldwide. The company is headquartered in Alphen aan den Rijn, the Netherlands.

Wolters Kluwer shares are listed on Euronext Amsterdam (WKL) and are included in the AEX, Euro Stoxx 50 and Euronext 100 indices. Wolters Kluwer has a sponsored Level 1 American Depositary Receipt (ADR) program. The ADRs are traded on the over-the-counter market in the U.S. (WTKWY).

For more information about Wolters Kluwer, please visit: www.wolterskluwer.com or follow us on LinkedIn, Facebook, YouTube and Instagram.

About Brightflag
Brightflag’s AI-powered enterprise legal management (ELM) platform provides Chief Legal Officers, General Counsel, and heads of legal operations with visibility into work and spend, tools that improve productivity, and insights needed to operate strategically. Brightflag customers benefit from automatic monthly software updates and a proactive, consultative customer service team whose mission is to make them better month after month and year after year.

Media	Investors/Analysts
Stefan Kloet	Meg Geldens
Associate Director	Vice President
Global Communications	Investor Relations
press@wolterskluwer.com	ir@wolterskluwer.com
m: +31 612 223 657

Forward-looking Statements and Other Important Legal Information
This report contains forward-looking statements. These statements may be identified by words such as “expect”, “should”, “could”, “shall” and similar expressions. Wolters Kluwer cautions that such forward-looking statements are qualified by certain risks and uncertainties that could cause actual results and events to differ materially from what is contemplated by the forward-looking statements. Factors which could cause actual results to differ from these forward-looking statements may include, without limitation, general economic conditions; conditions in the markets in which Wolters Kluwer is engaged; conditions created by pandemics; behavior of customers, suppliers, and competitors; technological developments; the implementation and execution of new ICT systems or outsourcing; and legal, tax, and regulatory rules affecting Wolters Kluwer’s businesses, as well as risks related to mergers, acquisitions, and divestments. In addition, financial risks such as currency movements, interest rate fluctuations, liquidity, and credit risks could influence future results. The foregoing list of factors should not be construed as exhaustive. Wolters Kluwer disclaims any intention or obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events or otherwise.

Elements of this press release contain or may contain inside information about Wolters Kluwer within the meaning of Article 7(1) of the Market Abuse Regulation (596/2014/EU).

Trademarks referenced are owned by Wolters Kluwer N.V. and its subsidiaries and may be registered in various countries.

Attachment

• 2025.05.29 Wolters Kluwer to acquire global legal software provider Brightflag

FAQ

What is the acquisition price for Brightflag by Wolters Kluwer (WTKWY)?

Wolters Kluwer is acquiring Brightflag for €425 million in cash.

What is Brightflag's annual recurring revenue (ARR) as of April 2025?

Brightflag's annual recurring revenue (ARR) reached €27 million as of April 2025.

What percentage of Brightflag's revenue comes from U.S. customers?

Approximately 60% of Brightflag's revenue comes from U.S. customers.

When is the Wolters Kluwer-Brightflag acquisition expected to close?

The acquisition is expected to be completed in June 2025, subject to customary closing conditions.

What is the expected impact of the Brightflag acquisition on Wolters Kluwer's earnings?

The acquisition is expected to have an immaterial impact on Wolters Kluwer's adjusted earnings in the near term.