DocuSign is a contract management platform that is committed to remaining a public company and is working to convince investors of its potential in artificial intelligence (AI), according to CEO Allan Thygesen. Reports had suggested that the firm was the target of takeover interest from private equity suitors such as Bain Capital and Hellman & Friedman, but Thygesen stated that the company’s focus is on building a great, independent public company. While he did not confirm the rumors of PE buyers’ previous interest in DocuSign, he did not rule out the possibility of a future merger or acquisition. However, he emphasized that the company is currently focused on building a strong independent company and sees a huge opportunity for growth.
In February, DocuSign announced plans for a restructuring that included laying off 6% of its global workforce, with most of the redundancies affecting sales and marketing functions. This restructuring is expected to result in a $28 million to $32 million hit in expenses related to employee transition, notice periods, and severance payments. The company stated that these measures were taken to realize its growth aspirations as an independent public company. DocuSign has been attempting to convince investors of its AI-driven future by making announcements about products powered by AI technology and acquiring Lexion, an AI-based contract management product, for $165 million in cash.
Thygesen has led DocuSign through a rebranding process, changing the company’s logo and refreshing its brand. He also introduced a new product focus called “Intelligent Agreement Management” (IAM), which is an automated version of the company’s Contract Lifecycle Management (CLM) process. This process manages a contract’s journey from pre-signature activities to post-signature management. Thygesen stated that investors have been convinced of the company’s stability and growth plans and are now interested in seeing how DocuSign will perform with its new AI-driven initiatives. He believes that AI will have a profound impact across industries, functions, and sizes, and sees DocuSign as well-positioned to take advantage of this technology.
While DocuSign had been rumored to be pursued by private equity firms, Thygesen stated that the company is fully focused on building a successful independent public company. He mentioned that the opportunity for shareholders, customers, and employees is exciting, and the company is determined to move forward with its AI-driven future. Despite not confirming the past interest of PE buyers, Thygesen did not rule out the possibility of future M&A transactions. For now, DocuSign is concentrating on its growth aspirations and believes that it has a significant opportunity for success in the evolving AI landscape.
