Wolters Kluwer Acquires AI-Powered Legal Operations Platform Brightflag to Expand Reach in U.S. and European Markets

Wolters Kluwer Acquires AI-Powered Legal Operations Platform Brightflag to Expand Reach in U.S. and European Markets

(IN BRIEF) Wolters Kluwer Legal & Regulatory has agreed to acquire Brightflag, an AI-powered legal spend and matter management software provider, for approximately €425 million. The acquisition, set to close by June 2025, will expand Wolters Kluwer’s presence among mid-size corporations in the U.S. and Europe. Brightflag, founded in 2014, has experienced significant growth, with 95% of its revenue being recurring. The deal is expected to enhance Wolters Kluwer’s AI-powered legal technology solutions and increase its market share in the legal operations sector.

(PRESS RELEASE) ALPHEN AAN DEN RIJN, 29-May-2025 — /EuropaWire/ — Wolters Kluwer Legal & Regulatory has announced an agreement to acquire Brightflag, a rapidly growing provider of AI-powered legal spend and matter management software, for approximately €425 million in cash. This strategic acquisition will bolster Wolters Kluwer Legal & Regulatory’s position among mid-size corporations in the U.S. and Europe, further expanding its reach beyond its traditional focus on large corporations and their law firms.

Founded in 2014, Brightflag is a cutting-edge legal operations platform that utilizes AI to streamline matter management, control legal spend, and improve collaboration between corporate legal departments and outside counsel. Brightflag currently employs 155 full-time professionals, all of whom will join Wolters Kluwer’s Legal & Regulatory division upon completion of the acquisition.

Martin O’Malley, CEO of Wolters Kluwer Legal & Regulatory, expressed his enthusiasm for the acquisition, stating, “Today’s legal professionals need innovative solutions that not only drive efficiency but also optimize legal matters and spending. We are thrilled to welcome Brightflag to Wolters Kluwer, and together, we will continue to lead the way in AI-powered legal technology tailored to the evolving needs of corporate legal departments.”

Ian Nolan, CEO and Co-Founder of Brightflag, shared his excitement, saying, “Since our inception, Brightflag has been dedicated to transforming legal spend and matter management through AI-driven innovation. We’re excited to join forces with Wolters Kluwer, a company that shares our vision of using advanced technology to enhance legal operations. We look forward to working together to accelerate the future of legal solutions.”

In 2024, Brightflag achieved impressive growth, with revenues increasing by 36% to approximately €22 million (unaudited). By April 2025, the company had reached an annual recurring revenue (ARR) of €27 million, with around 95% of its revenue coming from recurring sources, and approximately 60% of that revenue from U.S. customers. The acquisition is projected to generate 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’s adjusted earnings. The transaction remains subject to customary closing conditions and is anticipated to be finalized by June 2025.

About Wolters Kluwer

Wolters Kluwer (EURONEXT: WKL) is a global leader in information, software solutions 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-countermarket 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.

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.

Media Contacts:

Stefan Kloet
Associate Director, Global Communications
Stefan.kloet@wolterskluwer.com
+31 612223657

Meg Geldens
Vice President, Investor Relations
ir@wolterskluwer.com
+31 172 64 1407

SOURCE: Wolters Kluwer N.V.