Global law firm K&L Gates has advised generative AI company Leonardo Interactive Pty Ltd (Leonardo.ai) on its sale to Australian founded, global graphic design giant Canva, Inc.
Leonardo.ai is an early-stage generative AI business based in Australia that is backed by venture capital funds including Blackbird and Side Stage Ventures. Leonardo.ai’s online platform allows users to generate complex visual assets. Canva is Australia’s largest private technology company, offering online graphic design and publishing tools.
Canva’s strategic acquisition of Leonardo.ai recognises the value of its robust foundational models and its team of 120 researchers, engineers, and designers. Leonardo.ai will continue to develop its platform and expects to accelerate its already impressive growth with Canva’s backing.
K&L Gates’ global platform and industry experience were key to this transaction, enabling the firm to assemble its cross-border M&A, Emerging Growth/Venture Capital and Tax teams to advise on the deal.
Sydney corporate partners Simon Leslie and Dan Atkin, and tax partner Stuart Broadfoot led the deal team with support from senior associates Jacob Blakely and Leon Fung, and lawyers Adina Darbyshire and Beliz Ozturk. Lawyers from K&L Gates’ San Francisco and Palo Alto offices provided advice on US law aspects of the transaction including in relation to tax structuring.
Chris Gillis, Co-Founder & CFO of Leonardo.ai said: “We’ve always been focused on democratizing creativity through generative AI, and joining forces with Canva was the perfect opportunity for us to accelerate this vision. K&L Gates proved to be exceptional partners and advisors across every aspect of the acquisition. We operated an accelerated process to complete the transaction in record time, and K&L Gates expertly delivered across all facets of the deal, at speed.”
K&L Gates’ Leslie stated: “We are absolutely delighted to have assisted Leonardo.ai in this significant deal between two innovation giants. The transaction further demonstrates our strength in emerging-growth and venture capital, and the degree of collaboration between our offices and practice groups. “
Leonardo.ai is a portfolio company of Blackbird, a long-term client of the firm. K&L Gates previously advised Blackbird on its investments into Leonardo.ai.
The Emerging Growth and Venture Capital practice represents emerging companies, venture funds, corporate investors, and individuals in connection with their investments in start-up and early stage emerging growth companies. This includes, among other areas, venture capital financing, acquisitions and disposals of portfolio companies, recapitalizations, restructurings, and liquidity and realization events, including IPOs.
