Wilson Sonsini sells legal tech business in reported $70-$85m deal

Tech-focused US law firm Wilson Sonsini has sold its legal tech subsidiary SixFifty, in the latest exit by a law firm-backed software business as interest in legal tech continues to grow.

SixFifty, which offers HR compliance and employment law software, was reportedly acquired in May by a large listed payroll and HR company in the US. The sale was first reported by legal tech website LawSites, which cited sources putting the deal value at $70 - $85 million.

Wilson Sonsini launched SixFifty in 2019, combining the firm's legal know-how with software to offer regulatory and compliance support tools. The first product was a data privacy compliance tool.

In a statement released on completion of the deal, managing partner Doug Scott said: "SixFifty was launched with a bold vision - to harness technology to assist businesses navigate legal and compliance challenges. Its strong trajectory and market impact reflect that vision in action."

"As SixFifty enters this next phase under new ownership, we’re confident it is well-positioned to scale its reach, accelerate innovation, and continue offering smart, tech-driven solutions that meet the real-world needs of businesses today."

A growing trend among law firms

The sale adds to a growing list of law firms successfully spinning off - and exiting - legal tech businesses they've backed or founded.

In the UK, Travers Smith launched its AI platform Jylo as an independent business in 2024. The company made headlines recently after signing a major deal with the Council of Europe. Innovation frontrunner A&O Shearman sold a majority stake in its legal SaaS arm aosphere to private equity investors in 2023 in a deal reportedly valuing the business at over £200 million.

Slaughter and May was an early backer of UK-founded legal tech company Luminance and took part in its $75 million Series C funding round in February. The firm reportedly held a 5% stake in the company at launch.

In the US, Orrick’s legal project management platform Joinder was spun out and later acquired by Irish tech company Brightflag in 2021, which itself was bought by Wolters Kluwer in May in a €425 million deal in May this year.