Cloud-based software provider DocuSign (DOCU) has agreed to acquire the intellectual property rights and add the team of smart agreement provider Clause. DocuSign had participated in Series A funding of Clause in 2019.
Clause’s smart agreement platform helps automate tasks such as sending notifications, updates of contract status, and compliance checks.
The two companies already work together and have integrated their products. Furthermore, Clause’s expertise in providing solutions for financial, insurance, and healthcare clients complement DocuSign’s Agreement Cloud.
DocuSign Chief Technology Officer Kamal Hathi said, “The majority of the Clause team will move over to our platform engineering team, thereby adding some unique technical expertise and a breadth of capabilities that align well with the future of the Agreement cloud platform.” (See DocuSign stock analysis on TipRanks)
Hathi added, “We look forward to welcoming the Clause team into DocuSign.”
Last month, Wolfe Research analyst Alex Zukin initiated coverage of DocuSign with a Buy rating and $275 price target (36.4% upside potential).
Zukin believes DocuSign has a long growth trajectory ahead coupled with limited competition.
Consensus among analysts is that DocuSign is a Strong Buy based on 11 Buys and 1 Hold. The average analyst price target of $269.18 implies 33.5% upside potential. Shares have gained about 37% over the past year.
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