ExlService Holdings, Inc., a prominent global data and AI firm, has entered into a definitive agreement to acquire iMerit, an esteemed leader in AI model training and evaluation, for a substantial sum of up to $310 million. This acquisition, set to close in the third quarter of 2026, is anticipated to significantly enhance EXL’s ability to deliver impactful AI solutions and expand its reach in the burgeoning AI technology sector.
Trilegal’s Role in the Acquisition
Trilegal provided crucial legal counsel to iMerit and its shareholders throughout this transaction. The firm’s advisory encompassed various structural elements, notably the treatment of iMerit’s outstanding Employee Stock Ownership Plans (ESOPs). Trilegal also played a pivotal role in negotiating and finalizing the share purchase agreement along with ancillary documents such as disclosure schedules, restrictive covenants, and employment agreements.
In addition, Trilegal guided iMerit through the process of transitioning its employees, which included negotiating and finalizing transfer agreements, service agreements, and offer letters. The transaction was spearheaded by partners Abhishek Guha and Tanya Uppal, with senior associates Shreya Gokhale and Vijay Chawla providing vital support.
Specialized Legal Expertise
The transaction benefited from Trilegal’s specialized expertise across various legal domains. Apeksha Mattoo (Partner) and Maitreya Sharma (Senior Associate), along with associates Achintya Anupam and Anjali AR, advised on labor and employment law matters. Real estate legalities were managed by Monika Bhonsale (Partner), Uday Shah (Senior Associate), and associate Muskan Dadia.
Further, Gauri Chhabra (Partner) handled competition law issues, Kirti Balasubramanian (Partner) oversaw intellectual property law, and Jishnu Sanyal (Partner) advised on technology, media, and telecommunications law.
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Sheppard Mullin’s Advisory to EXL
Sheppard Mullin provided comprehensive legal advice to EXL during this acquisition. The transaction team was led by partners Valerie Demont and Matt McCalip, supported by associates Teresita Acedo, Anushna Das, and Claire Jang. They were further assisted by a diverse team of experts, including partners Greg Berk, Michael Chan, Dmitriy Chelnitsky, Sean Kirby, Carolyn Metnick, Jennifer Redmond, Tamar Rosenberg, Niya Tang, and Dimitris Vallindas.
Associates Brandon Buck, Tracy Chau, Brian Egan, Sally Elshihabi, Jonathan Finkel, Melissa Hughes, Theodore Mayer, Isaiah Smith, Michael Weisshar, and Daniel Yannuzzi, along with special counsel and attorneys, ensured a comprehensive advisory framework for the acquisition.
Strategic Impact of the Acquisition
The acquisition of iMerit is poised to bolster EXL’s capabilities in delivering precise and effective AI solutions. It will also foster enhanced collaborations with leading foundation model developers and expand EXL’s footprint in rapidly advancing AI markets. By adding iMerit’s expertise in large language and multimodal model training, EXL aims to drive measurable results across diverse industries, including insurance, healthcare, banking, media, and retail.
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The completion of this transaction remains subject to customary closing conditions.
