Factor acquires Nicole Bradick’s development agency Theory and Principle in GenAI push 

New York-headquartered alternative legal services provider Factor has acquired Theory and Principle, the legal technology design and development agency founded by Nicole Bradick.  

Bradick and her team of 11 will be joining Factor to develop AI solutions that address Factor’s own lawyers’ needs and, in turn, its customers’ pain points. Factor serves the corporate legal market but this acquisition notably marks the start of the ALSP questioning how it can assist law firms, which constitute Theory and Principle’s core market. The acquisition follows the launch by Factor of AI initiatives such as The Sense Collective (a GenAI collaboration community of in-house legal leaders) and the Sensemaker Academy, a training program to accelerate AI adoption.  

 

The Sense Collective was launched a year ago, bringing together 17 leading law departments from the likes of Microsoft and Adobe in a global community to share GenAI knowledge and best practices. It is expanding its numbers this year. 

Speaking to Legal IT Insider, Bradick said: “We’ve been familiar with Factor for a while; we did some work for them and got to know the team and they got to know ours over the summer and they are shifting to focus much more on AI with The Sense Collective program. We were looking for an opportunity to join a larger organisation to expand what we’re doing and have more resources, and the timing was perfect. Our goals and teams align and we’re very similar in how we view the market and the opportunity.” 

Factor’s CEO Varun Mehta told us: “Nicole has a phenomenal reputation in the market and what is exciting about what she has built is that she has helped so many organisations as they innovate. 

“As an organisation we have been focused on how to solve the biggest need: complex legal work at scale. It’s work that needs really good lawyers and can benefit from scale, process, and technology.  

“Technology has always been the weakest of the three, not because of Factor, but because most legal technology has not been successful at moving work through a process. With GenAI we don’t just want to embrace it but to lead the way, which is core to us solving this big unmet need.” 

Theory and Principle specialise in building web and mobile applications that improve user interface and experience. Mehta said: “What will happen over the next few years is unknown. We can read and write hypotheses but we want to meet the moment and integrate our experience and process experience with the best of GenAI and Nicole and her team will bring that to life.” 

Factor hasn’t focused on the private practice legal market but Mehta said: “We’ve do think that GenAI means we have an interesting way to support law firms. Nicole has built some amazing products and has great relationships with firms so we’re in the learning stage of what that might mean going forward.” 

For Theory and Principle, which works primarily with law firms, this acquisition will open them up to a new corporate market and opportunity. The first priority will be supporting Factor’s lawyers and then exploring further opportunities in the market. 

One question that those who know Bradick and her team may have, is whether being part of a larger corporate will mean they lose the unique energy and identity that has helped them to stand out and grow in the market. 

Bradick said: “Over the last few years we have talked to a few companies about coming together but at Factor, what attracted me is that the leadership team want us to stay who we are – we don’t need to modify in any meaningful way.” 

Mehta added: “We have resisted M&A because while it can be impactful, cultural fit is super important. Our view is that one size doesn’t fit all, and we have been super impressed by Theory & Principle’s passion and energy.”