DocuSign Acquires AI-Driven Contract Management Provider Lexion for $165M to Enhance IAM Platform

DocuSign has acquired Lexion, an AI-driven agreement management software provider, in an all-cash deal valued at $165 million. This acquisition is aimed at strengthening DocuSign's position in the Intelligent Agreement Management (IAM) sector, an area it recently entered. Importantly, Lexion’s products will remain available and will be enhanced for its existing enterprise customers.

Founded in 2019 by Gaurav Oberoi, Emad Elwany, and James Baird at the Allen Institute for AI (AI2) in Seattle, Lexion utilizes natural language processing to transform contract text into structured data. This data is stored in a repository equipped with search functionalities, reporting, alerts, permissions, and integrations. Lexion competes with companies like Cortical, Pactum, LinkSquares, Evisort, Contractbook, and Agiloft. Oberoi, Elwany, and Baird will assume senior product and engineering roles at DocuSign.

DocuSign Chief Executive Allan Thygesen stated, “We share a vision of smarter agreement management. Our joint AI-powered innovation will enhance value, productivity, and simplicity for our customers.” He emphasized that this strategic acquisition reflects DocuSign’s commitment to offering IAM solutions that convert agreement data into actionable insights, expedite contract reviews, and ultimately drive revenue growth.

With Lexion’s technology integration, DocuSign plans to enhance its IAM platform by providing deeper insights into agreements, introducing an AI-powered plugin for Microsoft Word to simplify contract development, and offering a Q&A feature for easier information retrieval from agreements. The platform will also streamline document management through email and messaging services like Microsoft Teams and Slack.

“We envision revolutionizing how organizations worldwide create, manage, and analyze agreements,” Oberoi noted. “Our partnership with DocuSign will foster innovation and deliver significant value to both Lexion and DocuSign customers, enhancing our collective expertise in agreement management.”

Lexion has secured over $35.2 million in venture funding from notable investors, including Madrona Ventures, Khosla Ventures, Citi Ventures, Point72 Ventures, and the law firm Wilson Sonsini Goodrich & Rosati.