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  • Mariane Bunn

DocuSign acquires AI-powered contract management firm

The image is a chess game, there's a human hand putting a key in the king, that is a central figure.

DocuSign, a company known for its electronic agreement services, is making headlines as it explores the possibility of being sold to a private equity firm. Amidst these discussions, DocuSign has announced its acquisition of Lexion, a startup specializing in automating contract workflows, for $165 million. This move is part of DocuSign's broader strategy to enhance its offerings in the contract management arena, including the recent launch of DocuSign IAM, a service designed to streamline the agreement creation and negotiation process for businesses.

Lexion, which emerged from the Allen Institute for Artificial Intelligence, was co-founded by Gaurav Oberoi, Emad Elwany, and James Baird. The startup initially focused on creating a smart repository for contracts that allowed legal teams to query documents using natural language. Over time, Lexion expanded its capabilities to support various document creation needs across legal, sales, IT, HR, and finance departments. Before its acquisition, Lexion had secured $35.2 million in venture capital from notable investors.

DocuSign's CEO, Allan Thygesen, highlighted that Lexion's technology would offer DocuSign customers deeper insights into their contracts, facilitating better risk assessment and contract negotiation. The integration of Lexion's AI models with DocuSign's suite of products is expected to enhance the contract management process significantly.

This acquisition occurs as DocuSign, valued at approximately $12.5 billion, is reportedly considering a sale to private equity, with Bain and Hellman & Friedman among the potential buyers. The company has also recently announced a workforce reduction of about 6% as part of its restructuring efforts. DocuSign's history of acquisitions, including SpringCM and Seal Software, underscores its commitment to expanding its capabilities and improving its service offerings in the contract management space.

Source: TechCrunch


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