DocuSign buys AI contract analytics firm Seal Software for $188M
DocuSign Inc. today announced it will acquire artificial intelligence-powered contract analytics company Seal Software Ltd. for $188 million in an all-cash deal.
Founded in 2010, Seal develops contract discovery and contract management software solutions. Using user-driven machine learning and natural language processing, the company’s software allows users to find contracts of any type across their networks quickly as well as being able to understand risk and opportunities hidden in contracts, according to Seal.
Seal’s software is designed specifically for enterprise users with elastic cloud scalability, multi-instance data security and rapid virtual deployment to support enterprise-wide rollouts as well as individual projects such as merger-and-acquisition due diligence and post-transaction integration.
Prior to the acquisition, DocuSign had a relationship with the company, reselling Seal’s analytics and machine learning application through the DocuSign Agreement Cloud. Post-acquisition, DocuSign intends to integrate Seal’s technology comprehensively across its Agreement Cloud.
“As the Agreement Cloud company, DocuSign is about digitally transforming the very foundation of doing business: agreements and agreement processes,” Scott Olrich, DocuSign’s chief operating officer said in a statement. “We believe that AI will play a vital role in this transformation. And by integrating Seal into DocuSign, we can benefit from its deep technology expertise and its broad experience applying AI to agreements.”
The acquisition is DocuSign’s first acquisition since it acquired cloud contract management firm SpringCM for $220 million in July 2018 and its second since its successful initial public offering in April 2018. Despite markets being hammered this week over coronavirus fears, DocuSign has managed to keep its share price fairly solid, closing trading Thursday at $83.21, down 0.4%. The company’s stock hit an all-time high of $91.49 Feb. 19, far above its initial offering price of $29 per share.
Prior to acquisition, Seal had raised $58 million in funding. Investors included DocuSign, Tern and Toba Capital. The acquisition is expected to close in the first half of DocuSign’s fiscal year.
Image: Seal Software
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