Earlier this year, reports that Harvey was seeking to acquire vLex circulated in the industry. Sources close to the deal said the loose talks eventually fell through—likely for a handful of reasons.
October 14, 2024 at 01:09 PM
Here’s the introduction to the piece
After decades of a few major companies dominating the legal research space—over the summer, for a brief moment, firms wondered if a third player might sneak in the door.
The first report that the gen AI startup Harvey was eyeing a $600 million raise to buy legal research veteran vLex, came in June, through The Information.
Both Harvey and vLex declined to comment when Legaltech News asked about it at the time.
By July, The Information reported that the deal was not happening. Shortly after, Harvey told Legaltech news it had struck a smaller $100 million funding deal. vLex, on the other hand, was expanding the capabilities of its Vincent AI tool which would likely compete against Harvey, rather than supplementing it.
Still, three sources with knowledge of the matter told Legaltech News that the acquisition rumor was not a complete fabrication, nor was it a set-in-stone deal that fell through. Rather, they said, it took the form of loose conversations between Harvey’s venture capital investors and vLex’s private equity backers which stalled when Harvey was unable to raise enough for a buyout. Others, however, noted the major cultural differences between the two companies simply would not have allowed this acquisition to be successful.
But, if Harvey wants to make true on the third item in its tech offerings—workflow automation; an AI assistant, and legal research—it’s going to have to find the data.
The story of Harvey and vLex underscores the market barriers to a startup becoming a substantial legal research mainstay in an industry where quality case law is being stockpiled by a few major companies.
But, whether vLex and Harvey have a potential future together—and what it would mean for the industry, remains to be seen.
Quick Rundown: Who Are Harvey and vLex?
Learn more and why the deal didn’t come off at
