Clio, the global leader in legal AI technology, today announced it has completed its US$1 billion acquisition of vLex, one of the most significant transactions in legal technology history. The completion of the deal coincides with the closing of Clio’s US$500 million Series G funding round, led by New Enterprise Associates (NEA), valuing the company at US$5 billion. The round also includes other current investors: TCV, Goldman Sachs Asset Management, Sixth Street Growth, and JMI Equity.

Clio, a Canadian legaltech company, has reached $500 million in annual recurring revenue, fuelled by strong demand for its AI offerings. The milestone follows a $500 million Series G funding round in November 2025 that valued the firm at $5 billion. The company's growth reflects broader adoption of AI across various sectors, including healthcare and customer support. However, no single AI use case has yet matched the widespread popularity of code writing applications. Clio's performance demonstrates increasing enterprise appetite for AI-powered legal technology solutions as the sector continues to attract significant investor interest.

Clio, a Canadian law firm management software company, has reached $500 million in annual recurring revenue, driven by AI integration. The 18-year-old company surpassed $200 million ARR in mid-2024 and doubled that figure by late last year. CEO Jack Newton argues legal tech is poised to become a major AI winner, citing the wealth of contracts and agreements that provide training data for large language models. Clio isn't alone in this surge: Harvey reached $190 million ARR by end-2025, whilst Legora hit $100 million ARR just 18 months after launch. However, Anthropic's recent expansion of Claude for Legal creates an awkward dynamic, as the AI provider now competes with clients like Harvey and Legora. Clio was valued at $5 billion in its November Series G round.