Docusign Announces Agreement To Acquire Lexion
Acquisition would accelerate the company's move to Intelligent Agreement Management
SAN FRANCISCO, May 6, 2024 /PRNewswire/ -- Docusign, (NASDAQ: DOCU) today announced its agreement to acquire Lexion, a leading provider of AI-powered agreement management software, for $165 million in cash, subject to customary adjustments. The acquisition will bolster Docusign's position in Intelligent Agreement Management (IAM), a growing SaaS category, and will add more powerful AI capabilities to the Docusign IAM platform.
Lexion's innovative AI-based agreement technology simplifies and centralizes the contract process, enabling accelerated drafting, negotiation, and review of agreements. With a suite of solutions designed for creating automated workflows and extracting vital information from contracts, Lexion has established itself as a proven leader in streamlining agreement management.
"We are thrilled to welcome Lexion to Docusign," said Allan Thygesen, Chief Executive Officer at Docusign. "We share a vision of smarter agreement management and our joint AI-powered innovation will deliver increased value, productivity, and simplicity to our combined customers. This strategic acquisition underscores our commitment to providing our customers with Intelligent Agreement Management solutions that will transform agreement data into insights, accelerate contract reviews, and boost productivity to ultimately grow revenue faster."
The co-founders of Lexion — CEO Gaurav Oberoi, CTO Emad Elwany, and Principal Architect James Baird — will join Docusign in senior roles within product and engineering: Oberoi will be a VP of Product Management, Elwany will be a VP of Engineering, and Baird will be a Principal Engineer. The co-founders, who met at the Allen Institute for AI, have extensive expertise in AI and contract management. Lexion also brings to Docusign a team of world-class AI engineers with backgrounds at Amazon, Google, Meta, and Microsoft along with a broader organization that has a deep understanding of the agreement management space.
"Our shared vision with Docusign revolves around revolutionizing how agreements are created, managed, and analyzed for organizations around the world," said Gaurav Oberoi, Chief Executive Officer at Lexion. "We will drive innovation, deliver greater value to both Docusign and Lexion customers, along with a broader organization that has a deep understanding of the agreement management space."
Lexion has won recognition for being quick and easy to implement, learn, and use. The company has a strong track record of listening to customer needs and delivering the solutions they need.
"From a business perspective, it's about speed and not just about saving legal professionals time, so when we get information into the hands of stakeholders and attorneys on the front lines, deals get closed faster," said David Wang, Chief Innovation Officer at Wilson Sonsini Goodrich & Rosati. "The potential for meaningful efficiencies and clear operational advantages was central to what Wilson Sonsini first saw in Lexion in its formative stages."
Lexion technology integration
The integration of Lexion's advanced AI capabilities into the Docusign IAM platform will enable organizations to access richer insights and analysis from their agreements, expedite contract reviews and negotiations, seamlessly locate insights within documents, and drive process automation. This includes bringing advanced document understanding capabilities to Docusign, including contract reviews, negotiation, a Q&A experience, and more:
Richer insights and analysis: Docusign will be able to help customers unlock insights to more critical information in their agreements to support day-to-day operations, answer business relevant questions, and identify risks. Lexion technology will enable Docusign to accelerate the pace of customers having granular understanding of their agreement structure, data, and attributes for a wider variety of contracts with better precision.
Lexion AI Contract Assist: A Word plug-in will substantially accelerate and intelligently assist in the contract review and negotiation process. Customers will be able to automatically review contracts from first and third parties for potential risks and deviations from approved playbooks. Where agreements don't align to company standards or customized playbooks, the feature provides suggested revisions with AI-generated recommendations.
Answer agreement questions, effortlessly: Lastly, Lexion technology will enable users to more seamlessly find information in their agreements, via the Q&A experience. Imagine being able to simply ask whether a contract includes an indemnification or warranty clause and have your question answered instantly, without scrolling through the whole document.
Seamlessly manage intake: Lexion's technology allows users to initiate tasks, provide approvals, and add comments simply via email, Microsoft Teams, or Slack. This seamless integration results in high adoption by the business, and a robust picture of agreement-related tasks in one place.
Lexion's AI and legal workflow expertise, along with our world-class Docusign AI team and scalable agreement platform, will drive innovation and value at a larger scale, enabling Lexion and Docusign to serve more customers across more industries and use cases sooner. Combining forces will benefit Docusign and Lexion customers. Docusign will leverage Lexion's AI models for faster contract creation, enhanced negotiations, and strategic insights. Lexion customers will gain from integrations with Docusign solutions while Lexion products will continue to be offered and improved for their hundreds of enterprise customers.
About Docusign
Docusign brings agreements to life. Over 1.5 million customers and more than a billion people in over 180 countries use Docusign solutions to accelerate the process of doing business and simplify people's lives. With intelligent agreement management, Docusign unleashes business critical data that is trapped inside of documents. Until now, these were disconnected from business systems of record, costing businesses time, money, and opportunity. Using Docusign IAM, companies can create, commit, and manage agreements with solutions created by the #1 company in e-signature and contract lifecycle management (CLM). Learn more at www.docusign.com.
About Lexion
Founded in 2019, Lexion is a powerfully simple agreement workflow platform that helps every team do more faster, by streamlining and centralizing the contracting process in a system that integrates seamlessly with how teams work. Its products include a repository for storing agreements with AI-powered tools for creating automated workflows and extracting valuable information that enables businesses to move faster, gain greater insights, and make better decisions.
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Forward-Looking Statements
This press release contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended, which statements involve substantial risk and uncertainties. All statements contained in this press release other than statements of historical fact, including statements regarding our business strategy and plans, market growth and trends, objectives for future operations, and the impact of such assumptions on our results of operations are forward-looking statements. Forward-looking statements in this press release include statements related to the anticipated benefits of the acquisition; our product strategy; anticipated new or enhanced products; and our expectations regarding customer acceptance of those products. In some cases, you can identify forward-looking statements because they contain words such as "will," "potential," or "continue" or the negative of these words or other similar terms or expressions that concern our expectations, strategy, plans or intentions.
Additional risks and uncertainties that could affect our financial results are included in the sections titled "Risk Factors" and "Management's Discussion and Analysis of Financial Condition and Results of Operations" in our annual report on Form 10-K for the fiscal year ended January 31, 2024 filed on March 21, 2024 with the Securities and Exchange Commission (the "SEC") and other filings that we make from time to time with the SEC. The forward-looking statements made in this press release relate only to events as of the date on which such statements are made. We undertake no obligation to update any forward-looking statements after the date of this press release or to conform such statements to actual results or revised expectations, except as required by law.
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SOURCE DocuSign, Inc.
