Docusign buys Lexion, creator of an AI-powered contract management platform, for $165M – Business

Docusign Inc. has snapped up a startup called Lexion, officially known as DocuSmart Inc., in an all-cash deal that’s said to be worth $165 million. The deal will help to boost Docusign’s new Intelligent Agreement Management platform, which was only launched last month.

Lexion was founded in 2019 by Gaurav Oberoi, Emad Elwany and James Baird, who first created its intelligent natural language processing system that transforms contract text into structured data while working at the Allen Institute for AI. Lexion delivers this structured data into a searchable database, so legal teams can ask natural language questions about those contracts and immediately find the answers they’re looking for. Lexion has since expanded on that product, and now offers an array of tools for contract creation in areas such as sales, information technology, human resources and finance.

Docusign Chief Executive Allan Thygesen said in a statement that the two companies are a natural fit, as they share a vision that’s focused on delivering “smarter agreement management”. He added that “our joint AI-powered innovation will deliver increased value, productivity and simplicity to our combined customers.”

Announced in April, Docusign IAM is a tool that’s designed to help businesses transform agreement data into insights and actions, accelerate contract review cycles and boost productivity organization-wide. The offering seeks to address the issue wherein companies fall into what Docusign calls an “Agreement Trap,” where outdated agreement systems and processes slow their businesses down and trap business-critical information inside static, flat files, unconnected to existing systems of record.

Docusign IAM works by connecting the varying components of the agreement management process, leveraging artificial intelligence to speed up contract creation, aid in negotiations and provide strategic insights. With the service, companies can create agreements that are collaborative, automated and integrated into their existing businesses processes and systems, including their customer relationship management, human capital management and enterprise resource planning systems.

The company detailed a number of new capabilities that will be added to its IAM platform in the coming weeks, once Lexion’s technology can be integrated with it. These include Lexion’s unique ability to provide users with rich insights into their business agreements, and an AI-powered plugin for Microsoft Word to help with contract development. Lexion’s natural language capabilities, which allow users to ask questions about their contracts in their regular voice, will also be coming to Docusign IAM.

Interestingly, Docusign said it intends to continue selling Lexion’s tools as a standalone offering – at least for now. The company said Lexion’s platform will remain available and will even be updated for the hundreds of enterprises that are already using it.
Lexion Chief Executive Gaurav Oberoi, who is joining Docusign as a vice president of product management, said the companies share a vision of revolutionizing how agreements are created, managed and analyzed. “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,” he insisted.

The acquisition of Lexion comes at a somewhat unusual time for Docusign, amid reports that it is also looking to be acquired itself. Rumors that the publicly-traded Docusign was looking for a sale first emerged in December, and the following month it was revealed that the private equity firms Bain Capital and Hellman & Friedman had both expressed a strong interest in acquiring the company and were among the “final bidders” in an ongoing auction.

However, there has been little news since then, even though the deal was said to be just weeks away from being concluded, so it may well be that Docusign is making plans to continue going it alone.

Image: Microsoft Designer