ProfitSolv, the legal technology company backed by Lightyear Capital, is expected to go up for sale early next year, according to three banking and private equity sources.
ProfitSolv has hired advisors and is anticipated to launch a formal auction process in the first quarter. The Knoxville, Tennessee-based company is expected to seek $1 billion, they said.
In addition to Lightyear, Greater Sum Ventures is also an investor in ProfitSolv. Greater Sum is the family office of Ross Croley, the founder of Community Brands and Ministry Brands.
Lightyear and Greater Sum declined to comment. ProfitSolv could not immediately be reached for comment.
In 2020, Lightyear, a financial services-focused private equity firm, launched ProfitSolv, which provides billing, payments and software for legal, accounting, and other professional services firms. Kelley Castell, a former First Data executive who was also COO of Bluefin Payment Systems, has served as ProfitSolv’s CEO since its formation. Castell declined comment.
Legal technology has emerged as one of the busiest sectors for private equity. The legal tech market is expected to reach $45.81 billion in 2032, up from nearly $25 billion in 2023, according to Archive Market Research.
ProfitSolv is the latest legal tech company to seek a buyer. Affinipay went up for sale earlier this year, resulting in Genstar Capital acquiring a minority stake at a $3 billion valuation. In July, Clio raised $900 million from investors including New Enterprise Associates, Goldman Sachs Asset Management and Sixth Street Growth.
Bottomline Technologies is also seeking a buyer for its legal spend management unit, a group that provides legal billing review, invoice processing, and data trend analysis, Coins2Dayreported in October. Bottomline is owned by PE firm Thoma Bravo.