US-based asset management firm TPG has agreed to acquire a majority stake in Elite from Canadian media group Thomson Reuters in a deal worth nearly $500m.

Elite offers financial and practice management solutions to law firms. It enables clients to automate and optimise critical finance and accounting workflows.

The firm provides a portfolio of solutions which are led by its flagship product 3E along with eBillingHub, ProLaw, and MatterSphere. These solutions are intended to enhance law firm finance and accounting operations, including invoicing, payments, billing, and financial reporting.

Thomson Reuters legal professionals business president Paul Fischer said: “We feel strongly that the new investment from TPG, along with Thomson Reuters minority ownership and board representation, will position Elite to ensure our customers’ continued success.

“We remain committed to providing our expertise and experience to help grow Elite while dedicating greater focus and investment in the area of content-enabled technology, including AI and automated workflow solutions, to better enable customers in the practice of law and to perform their work more efficiently.”

Through the transaction, Elite is expected to operate with more focus and receive additional resources and expertise to expedite growth and better serve its customers.

Following the closing of the deal, TPG’s US and European late-stage private equity business along with TPG Capital will become the majority shareholder of the standalone business.

Thomson Reuters will maintain a minority ownership stake in Elite with board representation to strategically support the firm in future.

Elite is expected to retain its existing product integrations with Thomson Reuters.

TPG partner Tim Millikin said: “TPG has a history of investing in software companies that address the unique needs of vertical markets. We believe the legal industry is a market that is undergoing digital transformation, and Elite partners with leading firms on that journey.

“Elite’s trusted technology, strong customer base, and significant growth potential has made the company a clear leader among the best law firms, and we look forward to working with the team to enhance and expand the platform.”

Subject to regulatory approvals and customary conditions, the transaction is expected to close in Q2 2023.

In January 2023, Thomson Reuters closed its previously announced $500m acquisition of SurePrep, a US-based provider of 1040 tax automation software and services.