Axiom’s managed services business, which was spun out from the legal talent company in February as part of a broader corporate reorganization, has relaunched as “Factor” with backing from previous Axiom investors.
Factor mainly uses technology and process redesign to help clients conduct large-scale contract negotiation projects, often in the financial industry. It employs more than 500 lawyers, technologists, and process consultants.
Original backers of Axiom’s managed services arm, Benchmark Capital and Carrick Capital, are “doubling down” on their investment in the rebranded company and will remain long-term investors, according to Factor.
Chris DeConti, head of strategy at Factor, declined to elaborate on Factor’s investors.
He said the company works with eight of the 10 largest banks in the world. Factor helped a number of them amend derivatives contracts as part of a regulatory change following the financial crisis, he said. And it is now helping banks amend contracts to move on from the LIBOR benchmark interest rate.
“That is really where we made a name for ourselves in handling this most complex work where you need quite a bit of market know-how in terms of how these documents get negotiated,” DeConti said.
Axiom launched more than 10 years ago, largely offering staff lawyers with previous Big Law experience. It branched out into managed services and developed a contract analytics technology platform.
Those three businesses now operate independently. The on-demand legal talent business, Axiom, in September received an investment from private equity firm Permira Funds, scrapping previously announced plans for an IPO. The technology platform, Knowable, which also spun out from Axiom in February, entered into a joint venture agreement with LexisNexis in July.
Christian Sommer, group legal director at Vodafone, said in a statement that the company has worked with the predecessor to Factor for years on “important and valuable work.”
“We have other solutions for low-complexity, commoditized work but our team at Factor handles sophisticated contract negotiations that previously would have been handled by senior in-house lawyers,” Sommer said.