There is major acquisition news today involving practice management technology. Software Technology LLC, developer of Tabs3 Software, a leading desktop law practice management program, has acquired CosmoLex, one of the leading cloud-based practice management platforms.
With the acquisition, Tabs3 is now able to provide solo and small firms with complete suites of billing, financial and practice management software in whichever “flavor” they prefer — desktop or cloud. The acquisition gives Tabs3 a combined customer base of over 100,000 legal professionals in the United States and Canada, the company said.
CosmoLex will remain a standalone product and become a division of Tabs3. Rick Kabra, who founded CosmoLex in 2013, will be president of the division, and his entire New Jersey-based team will remain with the company. CosmoLex customers will see no change in pricing or services, Kabra told me.
Tabs3 is a nearly 40-year-old company, founded in 1979 and based in Lincoln, Neb. Its desktop product includes billing, financials and practice management. It also has a cloud billing and trust accounting program, Kurent, designed for solos and small firms.
“We are thrilled to welcome CosmoLex to the Tabs3 family as we continue to build the leading platform for practice and financial management software for solo to midsized law firms,” Dan Berlin, president and CEO of Tabs3 since 1984, said yesterday. “CosmoLex plays a significant role in our vision to be the software partner of choice for every solo to midsized law firm in the United States and Canada, whether they desire cloud, desktop, or hosted desktop software.”
Kabra told me that he sees several advantages in this acquisition for customers of both companies. For CosmoLex customers, Tabs3 is a profitable company with the resources to continue to develop and improve CosmoLex’s cloud technology and features. For Tabs3 customers, they now have the option to switch to the cloud seamlessly, supported by the same company and team they already work with.
This is also good news to the network of technology consultants and referral partners who resell Tabs3, Kabra said, because they will no longer be forced to choose between recommending a desktop company or a cloud company.
In a phone call yesterday afternoon, Berlin said that he is excited about the acquisition becomes if fills out and complements his company’s product offerings. With the three-product line of Tabs3, Kurent and CosmoLex, the privately-held company will be able to provide a full range of financial and practice management services to firms from solos to mid-sized, whether they want cloud or desktop.
He said that he has heard from several Tabs3 customers who want to transition to cloud-based platforms, not because they are dissatisfied with the product, but because they want the flexibility of the cloud. He also hears from customers who are on cloud platforms but want to move back to desktop.
One of his first priorities now that the acquisition is complete is working on making migration seamless either way, whether a customer wants to move from desktop to cloud or cloud to desktop. Another focus will be on combining sales and marketing efforts to expand the market for all three products.
The deal was concluded last Friday and announced to partners yesterday afternoon.