Thomson Reuters Corp to Acquire Casetext M&A Call Transcript

The following is excerpted from the question-and-answer section of the transcript.

Question: Vince Valentini - TD Securities Equity Research - Analyst : Try to push on that a little bit more. Can you give us just any sort of concept of how you think about valuation for acquisitions like this, where you're clearly not enough revenue to value on today, no EBITDA, no free cash flow? Do you look out sort of 5 years to some sort of EBITDA level and discount back? Or do you just say, hey, this is strategic, we have to pay, we have to pay or else one of our competitors is going to grab it, and it doesn't really fit any model but it has to be done? REFINITIV STREETEVENTS | www.refinitiv.com | Contact Us consent of Refinitiv. 'Refinitiv' and the Refinitiv logo are registered trademarks of Refinitiv and its affiliated companies. JUNE 27, 2023 / 1:00PM, TRI.TO - Thomson Reuters Corp to Acquire Casetext M&A Call

Question: Vince Valentini - TD Securities Equity Research - Analyst : Okay. And a quick follow-up. Is this -- do you think this is sort of indicative of the environment we're in for acquisitions? Is there a bit of an arms race, and we should expect to see more of these sort of Casetext and SurePrep type valuation deals that are great over longer periods of time but dilutive short term? Or is this getting to the end of that cycle?

Question: Maher Yaghi - Scotiabank Global Banking and Markets, Research Division - Analyst : I just wanted to confirm, is it because the company was part of the Y Combinator network, that's why they got early access to GPT-4? And I'm trying to figure out, understand the IP position that they have for CoCounsel. How much of that IP is protected rather than potentially rebuilt or can be reconstructed by somebody else? And also, you talked about increasing TAM. Can you give us or quantify what that increase could look like in terms of the long-term opportunity set here through this acquisition?

Question: Maher Yaghi - Scotiabank Global Banking and Markets, Research Division - Analyst : Maybe I can approach this question another way. Do you see this product eventually being merged into your own product and sold within those products or continually -- or will continue to exist as a separate product? And how is it priced right now in the marketplace? How do you sell it? How are they selling it? What price are they getting from a typical customer?