Legal intelligence firm Relativity acquires AI document automation platform Gavel

US legal data intelligence firm Relativity is acquiring US AI contract review and document automation enterprise Gavel to help integrate its AI platform into Microsoft Word.

Relativity’s flagship data intelligence AI platform RelativityOne is an online workspace where lawyers collate and analyse digital evidence using AI. However, the documents generated from that process such as motions, briefs and contracts have remained in Microsoft Word, detached from the data that created them. The integration of Gavel’s AI-native document drafting and review platform means that process will now be integrated so that AI-generated content can be edited directly in Word.

Phil Saunders, CEO of Relativity, said the firm’s role in driving AI innovation in legaltech requires investing in technology and people, and that the firm is “delivering on that through Rel Labs”, its partnership and start-up investment programme.

He added: “This acquisition enhances our ability to support a wider arc of legal work, in the place where lawyers spend most of their time. The Gavel team is exceptional, and we’re excited to come together and bring what they’ve built to the Relativity community.”

Dorna Moini, founder and CEO of Gavel, commented: “Joining Relativity gives us an unrivalled opportunity to scale our shared vision for the industry, build faster and bring our technology to more legal teams. Relativity’s footprint, data platform and deep trust across the legal industry will help us take everything we’ve built at Gavel to the next level.”

Los Angeles-based Gavel was founded in 2020 by Moini, a former Sidley Austin associate for three years, before she also established HelpSelf legal in 2018, which helped survivors of domestic abuse navigate through the legal system.

Chicago-based Relativity’s last acquisition was four years ago with the purchase of another contract review firm Heretik. This followed two further additions in 2021, comprising of Text IQ, a firm that identifies sensitive data through AI, and data management software company VerQU.

In March, the firm announced that it was planning an IPO having filed a draft registration statement to the US Securities and Exchange Commission – which would be the first legaltech public offering for five years, subject to a review process.

The proposal followed a $920m debt refinancing agreement in January, that consisted of a $200m revolving credit facility alongside a $720m senior secured loan to refinance existing debt and to allocate working capital.