Spellbook Secures US$40 Million RBCx Debt Facility to Accelerate Legal‑AI Roll‑Up
The move signals a roll‑up strategy focused on acquiring customers plus key talent from weaker competitors.
Overview
- Spellbook obtained a US$40 million line of credit from RBCx to finance purchases of smaller legal‑AI startups.
- The company plans up to US$60 million in cash and stock for about five acquisitions over two years, is evaluating two targets, and expects to pay significantly below‑average multiples.
- Management is pursuing revenue‑generating contract‑AI vendors for their customer bases and acqui‑hires to bring talent in‑house, with plans to migrate users to Spellbook’s platform.
- Spellbook says revenue tripled in 2025 and it is tracking toward roughly US$100 million in ARR by year‑end, with more than 4,000 customers across 80 countries and about 100 hires planned in 2026.
- This week Spellbook announced a two‑year exclusive agreement with the Canadian Bar Association to provide AI contract tools to roughly 40,000 legal professionals and students.