Last month, Axiom, an alternative legal service provider, filed a draft registration statement with the SEC to hold an initial public offering of shares of stock. This is a big deal in the legal industry. Law firms are not able to be publicly traded in the U.S. as ethical rules prohibit ownership of a law firm by non-lawyers. This limits the ability of law firms to raise capital. The ability of an alternative legal service provider to raise capital by selling its shares of stock on stock exchange is a real competitive advantage.
Axiom launched in 2000 and specializes in offering technology-enabled legal services. It employs over 2000 people globally, and in 2017 reported revenue of $300 million. In preparation for the public listing, Axiom spun off two companies, Knowable and Axiom Managed Solutions. Knowable operates in the enterprise contracts intelligence space and Axiom Managed Solutions provides managed services for things like regulatory related projects or contract review. Axiom will continue to operate as a global marketplace for on-demand corporate legal talent.