Bala Cynwyd-based Prosperoware, which builds software and “collaboration systems” allowing lawyers to work remotely, has been bought for more than $100 million by legal document management firm Litera.
The deal aims to capitalize on the trend of law firms across the country to merge offices and improve digital communications and security, even before the pandemic pushes more lawyers to work from home. Combined firms will offer a broader menu of work-sharing services to lawyers collaborating remotely.
Chicago-based Litera, whose platform includes systems compatible with Microsoft’s popular Teams remote work services, announced the acquisition on Tuesday but did not disclose terms of the sale, which were provided by people familiar with the agreement.
The company expanded its operations with financial backing from New York-based private equity giant HG Capital.
Prosperoware employs 150 people, with approximately 40 in the Philadelphia area, the remainder in Kosovo in southeastern Europe and at sites in India, Mexico and elsewhere.
Prosperoware says its clients include two-thirds of the top 100 US business law firms. He also has clients in the UK
Keith Lipman, co-founder and CEO of Prosperoware, will remain at Litera as chief strategy officer. Co-founder and CTO Sheetal Jain will also remain with the combined company. Philadelphia-based law firm Blank Rome advised Prospero on the sale, which repaid early investors up to nine times the capital they had invested since 2018, according to people familiar with the company. OK.
Philadelphia-area investors included Rittenhouse Ventures, founded by Mid-Atlantic venture capital pioneer Bruce Luehrs in 2016; state-funded Ben Franklin Technology Partners of southeastern Pennsylvania, which has backed hundreds of start-ups in the region; and Robert Ciaruffoli, the seasoned executive of a northeastern Pennsylvania accounting firm who became a prominent investor and philanthropist in Philadelphia. Ciaruffoli and Luehrs are among the administrators of Prosperoware.
Avaneesh Marwaha, managing director of Litera, said in a statement that the combined company’s tools will enable law firms “to automate the new deal origination, budget and agreement process” on a single board. IT dashboards “to view and manage their work on platforms such as iManage, NetDocuments, and Windows file shares,” as well as Microsoft Teams.
Lawyers, once concentrated in busy office hubs, are now working from “increasingly remote or hybrid locations,” Lipman said in a statement. “The combined solutions will provide businesses with everything they need,” he added.