PE Deals

TPG to pick up majority stake in Elite from Thomson Reuters

Elite is a US-based software business providing financial and practice management solutions to law firms.

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  • The deal values Elite at around $500 million
  • TPG Capital, TPG’s US and European late-stage private equity business, will become the majority shareholder of the standalone business
  • Thomson Reuters will retain a minority ownership stake

TPG has agreed to acquire a majority interest in Elite, a US-based software business providing financial and practice management solutions to law firms, from Thomson Reuters. The deal values the company at around $500 million.

Based in Toronto, Thomson Reuters is a provider of business information services.

The transaction is likely to be completed in the second quarter of 2023, subject to regulatory approvals.

With the deal’s closing, TPG Capital, TPG’s US and European late-stage private equity business, will become the majority shareholder of the standalone business. Thomson Reuters will retain a minority ownership stake in Elite and have board representation.

Elite offers a suite of solutions, led by its flagship offering 3E as well as ProLaw, eBillingHub, and MatterSphere, aimed at improving law firm finance and accounting operations, including billing, invoicing, payments and financial reporting.

The transaction will enable Elite to operate with greater focus, providing additional resources and expertise to accelerate growth and better support its customers as they digitally transform, TPG and Thomson Reuters said in a statement.

“TPG has a history of investing in software companies that address the unique needs of vertical markets. We believe the legal industry is a market that is undergoing digital transformation, and Elite partners with leading firms on that journey,” said Tim Millikin, partner at TPG. “Elite’s trusted technology, strong customer base, and significant growth potential has made the company a clear leader among the best law firms, and we look forward to working with the team to enhance and expand the platform.”

TPG is a global alternative asset management firm based in San Francisco. It has assets worth $135 billion under management. The firm invests across five multi-strategy platforms: capital, growth, impact, real estate and market solutions

Baker McKenzie is serving as legal counsel to Thomson Reuters, and Davis Polk & Wardwell is serving as legal counsel to TPG.