Aderant has announced its acquisition of Virtual Pricing Director (VPD), a SaaS legal pricing solution known for leveraging artificial intelligence and adaptive workflows. This strategic acquisition is set to transform how law firms manage and strategize their pricing, addressing the growing need for transparency and alternative fee arrangements.
Founded in 2017 through a collaboration between UK costs consultancy Burcher Jennings and legal pricing consultancy Validatum, VPD is widely recognized as a global authority on law firm pricing. Led by co-founder Richard Burcher, VPD continues to specialize in both software and consultancy, offering crucial insights into legal pricing.
Addressing Industry Challenges
Law firms are under unprecedented pressure to deliver fee transparency and adopt alternative fee arrangements. Many firms struggle without a comprehensive understanding of past pricing and profitability. With VPD now part of Aderant’s portfolio, firms will have access to an integrated offering that unifies pricing, finance, and billing.
VPD will remain vendor-agnostic, supporting law firms that use systems like Elite 3E. This move is aligned with Aderant’s broader strategy, including its recent acquisition of Hercules AI, to maintain a vendor-agnostic product suite. However, it remains to be seen how VPD’s existing customers will react to the acquisition.
Insights from Aderant Leadership
In an interview with Legal IT Insider, Aderant’s CEO and President, Chris Cartrett, explained that the company was in the process of developing its own pricing solution when VPD came onto their radar. “When you look at leading law firms around the world, pricing is one of the greatest challenges,” said Cartrett. “Pricing is evolving with fixed fees and AI, making it a core challenge.”
Cartrett credited the discovery of VPD to team member Josiah Chaves, who identified the potential of VPD’s solution. “When we viewed VPD, we realized they had built what we intended to create. It was a no-brainer, and we couldn’t be happier to have Richard and his team join us,” Cartrett stated.
The Role of Richard Burcher
Aderant is keen for Richard Burcher to continue his consultancy and seminars, which are integral to VPD’s offerings. Cartrett emphasized that the acquisition is not just about the software, but also about supporting Burcher’s consultancy. “Law firms look to Richard for guidance and advice, and the software is a way to continue that,” he said.
While VPD is headquartered in the UK, it has a significant presence in the US, with Cartrett noting that the product is “ready to roll on day one.”
Market Implications and Future Prospects
Aderant’s acquisition of VPD positions the company to compete on pricing with partners such as BigHand. Cartrett acknowledged this competitive dynamic but noted that the core of their business lies elsewhere. “We have a longstanding matter budgeting tool called MatterWorks that operates globally,” he explained. “VPD enhances this with an AI-driven pricing tool unmatched in the market.”
Richard Burcher shared insights into VPD’s unique approach, highlighting that pricing is not merely a mathematical exercise but involves strategic decision-making. “Firms are overwhelmed with data, but the challenge is making it actionable, particularly for partners,” Burcher said.
Aderant’s acquisition of VPD is part of a series of strategic moves aimed at strengthening its back-office operations solutions. Cartrett remarked, “We’re acquiring talent and innovative products. The winners in the next five years will be those investing in AI now, especially in back-office operations.”
This acquisition underscores Aderant’s commitment to innovation and its strategy to remain acquisitive as it continues to expand its capabilities in legal technology.
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