Tuesday, December 22, 2009

Lateral Data Unveils an All-in-One e-Discovery Software Platform: Viewpoint 4.5

HOUSTON--(BUSINESS WIRE)--e-Discovery technology leader Lateral Data, LP today announced the availability of Viewpoint™ 4.5, an all-in-one e-Discovery platform that covers the primary components of the Electronic Discovery Reference Model (EDRM). Offered as a licensed solution for OEM or in-house installations, Viewpoint 4.5 gives e-Discovery service providers, corporate legal departments and law firms, a breakthrough in broad functionality, value, speed and advanced features for managing the large amounts of data associated with modern litigation.

Viewpoint 4.5 does the work of multiple tools, lowering both costs and resource needs for anyone involved in litigation support. Featuring a familiar Outlook-style interface, the technology can execute pre-processing, processing, analysis, review and production at speeds two to five times that of other leading products. Furthermore, it offers advanced capabilities including complex analytics, email threading, visual conceptual analysis and near-duplicate comparisons to keep pace with the needs of sophisticated requirements.

“Today’s legal requirements and data volumes have created a more mature and knowledgeable market where service providers and corporations must become more efficient to survive. Viewpoint’s simplicity allows our clients to utilize one robust platform where historically, they’ve needed four or five products to complete the solution,” said Dean Kuhlmann, VP of Business Development at Lateral Data. “Users are genuinely excited using Viewpoint over other alternatives. Viewpoint’s combination of technology and pricing structure are proving to be market disruptive making it an easy decision for anyone serious about e-Discovery.”

Saturday, November 28, 2009

Mimosa Systems raises $4 Million

Based in Santa Clara, California, Mimosa Systems, a maker of software that archives email and other data, has raised $4 million of a $5.5 million round of debt, rights and securities, according to a filing with the SEC. The company is backed by August Capital, Clearstone Venture Partners, Dot Edu Ventures, Focus Ventures, Jafco Ventures and Mayfield Fund.

As reported by VentureBeat, the company last raised money in June, bringing in $3 million in debt financing. Founded in 2003, Mimosa Systems is in a vertical trajectory growth mode that has allowed it to expand beyond the U.S. to the UK, France, Germany, China, Australia, Japan and Canada. "The key driver of Mimosa's growth is the explosion of content and the need for electronic information such as email and documents to be retained as a business record," says T.M. Ravi, Co-Founder, President and CEO, Mimosa Systems. Currently, there are about 300 employees in the company.

According to the company, the explosive volume of electronic information, coupled with the requirement to retain email records for regulatory compliance and legal discovery, has created a hot market for email active-archiving solutions. It also claims that the Mimosa NearPoint solution is the only integrated offering for archival, eDiscovery, DR, and storage management that can economically scale to meet the demands of today's enterprise. Recently, the company announced that the Stockbridge Real Estate Funds has deployed the Mimosa NearPoint archiving solution to deliver eDiscovery compliance readiness and end-user self-service for its email environment while optimizing overall performance of its Microsoft Exchange servers.

Tuesday, November 10, 2009

RELM Holdings Inc. Executes a Letter of Intent for Acquisition of a South East Electronic Document Management Company

RELM Holdings Inc. (PINKSHEETS: RELM) announced today that it executed a Letter of Intent (LOI) to acquire 100% of the equity interests in a well established Electronic Document Management company with facilities in the South East and Midwest.

Management noted that the target company will remain undisclosed pending the execution of definitive agreements per customary non-disclosure terms agreed on by the parties. The Company, founded in 1990, provides high-quality document management services to its clients in the pharmaceutical, legal, financial services, healthcare and commercial markets through electronic discovery, computer forensics, litigation support, commercial imaging, online collaboration, forms processing, and other services. Revenues for 2009 are expected to exceed $3,300,000.00. With this acquisition, Relm's annual technology revenues will exceed $5,000,000.00. Management will provide consolidated pro-forma statements once due diligence has been completed.

Management plans to operate the Company within the newly formed Relm Technology Group (RTG) and the Company's key executives will become members of the RTG Executive Management Team.

Friday, November 06, 2009

Dolan Media Acquires Majority Interest in DiscoverReady

MINNEAPOLIS--(BUSINESS WIRE)--Nov. 6, 2009-- Dolan Media Company (NYSE: DM), a leading provider of professional services and business information to the legal, financial and real estate sectors in the United States, said today that it acquired an 85% equity interest in DiscoverReady, LLC, a leading provider of outsourced discovery management and fixed-fee document review services to major companies and their counsel.

With headquarters in New York City and an office in Charlotte, N.C., DiscoverReady assists major corporations and their counsel in litigation and regulatory matters by providing integrated discovery solutions that drastically reduce legal costs while delivering high quality, defensible document review. Its customers include leading law firms, major banks and Wall Street firms, and Fortune 500 corporations.

Dolan Media Company Chairman, President and Chief Executive Officer James P. Dolan said that DiscoverReady will become the third business line offered by Dolan Media’s Professional Services Division.

Wednesday, November 04, 2009

Avalon Document Services Acquires Exacta Legal

Buffalo NY based Exacta Legal was acquired by Avalon Document Services.

Avalon Document Services announced the acquisition of one of its local competitors, Exacta Legal, in a move that formalized a long-standing relationship between the two litigation support services firms. The companies are part of a growing local presence in the electronic document management and discovery business that includes IKON, D-4 LLC and Toshiba Business Solutions, all with offices serving Buffalo.

Though Avalon first looked into acquiring the company last summer, J.P. Midgley, managing partner at Avalon’s Buffalo office said they felt the time wasn’t right, and only last month revisited the idea. The transaction was finalized last Thursday.

Midgley said he expects the acquisition to allow his company to branch out in both “pre-litigation preparedness and trial services,” and distinguish themselves from the competition. The market for legal document services and support has seen steady growth as more Western New York courts are moving toward electronic discovery as the norm in handling court cases.

“The big thing for us, is that they (Exacta) had a much longer-standing tradition of being a great service provider in Buffalo while we are the new people in town over the last year and a half,” Midgley said. “I am hoping it opens some doors and allows us to work with some people that they have had those long-standing relationships with.”

Avalon employs over 90 people in offices in Buffalo, Rochester, Syracuse and Utica. Exacta Legal had a staff of four operating out of its downtown Buffalo office. Midgley said those employees were relocated to Avalon’s offices and have been retained. He also didn’t rule out future acquisitions for what has now become Buffalo’s largest litigation support firm.

Wednesday, October 28, 2009

Integreon to Raise $100 Million to Fund Acquisitions

Mumbai, Oct 25 (PTI) Knowledge process outsourcing (KPO) firm Integreon is looking to raise about USD 80-100 million through private equity to fund acquisitions in India and overseas. "We are looking to seek commitment to the level of USD 80-100 million (solely through private equity) and whenever there is an opportunity, we will use that capital for an acquisition," Integreon Chief Operating Officer, Asia Pacific, Lokendra Tomar, told PTI here.

He said the company intends to complete fund-raising in the next one or two quarters. Integreon provides outsourced knowledge, legal, and administrative support services mainly to banking, legal, consulting, IT and pharma firms in the US and Europe.

The US-based firm employs about 1,200 people at three delivery centers in India and plans to further up head-count through an acquisition. The KPO recently added a 1,000-seat facility in Mumbai.

"There is a strong likelihood that our next acquisition most likely will be in India and that will add a number of head-count to India (operations). We are looking to use the capital in 6-12 months, but if we get a good opportunity, we can accelerate the process," Tomar said.

Integreon is scouting for financial research firms in India as it wants to balance its offerings between legal and research services.

Wednesday, September 30, 2009

Altep Acquires Chicago Based Integrated eSolutions

Altep, Inc of Texas announced it had acquired Chicago based Integrated eSolutions for an undisclosed amount. Altep reports that it acquired a strong presence in the important Chicago legal market, and Integrated eSolutions will benefit from the advanced technology and low cost processing offered by Altep from its El Paso, Texas headquarters.

Sunday, September 27, 2009

RenewData Raises $6.1M in Funding

RenewData Corp. has raised a $6.1 million round of funding.

Austin-based RenewData, which provides electronic discovery services for law firms and corporations, received the funding from 12 investors, according to a filing with the U.S. Securities and Exchange Commission.

CEO Steven Horan couldn’t be reached for comment.

RenewData, founded in 2001, employs about 175 workers.

In 2006, the company raised $30 million series C round of funding, and in 2007, it raised a $5 million Series D round of funding. It’s two investors have been Baltimore-based ABS Capital Partners and CIBC Capital Partners, which operates offices in Canada and Boston.

In August, RenewData completed its first acquisition when it bought New York-based Digital Mandate LLC for an undisclosed amount. ABS Capital Partners and CIBC Capital Partners funded the deal.

Wednesday, September 02, 2009

EMC to Acquire Kazeon Systems, Inc.

HOPKINTON, Mass. - September 1, 2009, EMC Corporation (NYSE:EMC), the world leader in information infrastructure solutions, today announced it has signed a definitive agreement to acquire privately-held Kazeon Systems, Inc.– a leading eDiscovery software provider for corporations, legal service providers, government entities and law firms. The transaction is expected to close in Q3 2009, subject to customary closing conditions and is not expected to have a material impact to revenue or EPS for the full 2009 fiscal year.

With Kazeon, EMC will be able to offer end-to-end, in-house eDiscovery and litigation readiness solutions as part of the EMC SourceOne family for integrated but modular eDiscovery, archiving and compliance. Kazeon allows organizations to quickly and reliably identify, preserve, collect, process, analyze and review information in accordance with the widely accepted EDRM (Electronic Discovery Reference Model) framework. Core to Kazeon is its ability to handle Electronically Stored Information (ESI) that resides anywhere in the enterprise environment -- including content on laptops, desktops, content management repositories (including, EMC Documentum), Microsoft SharePoint and Exchange, Lotus Domino, email archives and file shares.

Click here to read the full release.

Follow up post is that EMC paid $75 million for Kazeon.

Sunday, August 23, 2009

E-discovery industry seeing slower growth, more mergers

Below are a few interesting comments from a recent e-discovery article in the ABA Journal, which mentioned the following companies: SPI Global Solu­tions, Onsite3, Integreon, Discover-e Legal, D4, Ivize, TechLaw Solutions and Kroll Ontrack.

From the article: A funny thing happened on the way to amending the federal Rules of Civil Procedure in 2006: That watershed event triggered a surge of investment in e-discovery software and services, fueling a mini tech bubble. The number of players exploded from a few dozen in 2000 to about 600 these days.

“It was almost like a gold rush,” says John Bace, research vice president of Gartner Inc. in Stamford, Conn. “People saw e-discovery as a quick and easy way to make money.”...

Commercial spending in this young niche is expected to increase this year by 20 percent to $4.05 billion, according to consultant George J. Socha Jr., who co-founded the Electronic Discovery Reference Model, an industry consortium that sets guidelines and standards.

But growth has slowed sharply from annual rates of more than 40 percent just a few years ago, according to Socha’s surveys. And it’s getting much harder to compete profitably in an industry that is coming of age during the worst economic downturn in decades. For one thing, clients no longer are willing to write open-ended checks for services that easily can exceed $1.75 million for an average case....

Gartner estimates that by the end of this year, one in four software vendors will be acquired, merge or exit the e-discovery business. Socha, founder of St. Paul, Minn.-based Socha Consulting, sees even more shrinkage over time; he estimates consolidation will reduce the number of service and software providers by about two-thirds to as few as 200. There will always be room for smaller service players, he says, but “the market truly cannot support this many vendors in the long haul.”...

EMC Rumored Buying eDiscovery Vendor Kazeon

Recent post on BNET...

EMC looks set to expand its document management and storage business with the adjunction of ediscovery specialist Kazeon Systems.

EMC and Kazeon are already partners, so EMC knows exactly what it’s getting, and an acquisition would ensure that Kazeon doesn’t get snapped up by rivals like Oracle, HP or Microsoft, which also provide application suites intended to help enterprise customers manage their vast stores of data. The deal also illustrates the success that vendors are having in convincing enterprise customers that ediscovery software can be a more strategic tool than simply a way to ensure compliance with government regulations and litigation rules.

In fact, EMC also partners with two other ediscovery vendors, Clearwell and StoredIQ, but those vendors sell more limited point solutions geared uniquely to legal applications, while Kazeon has more rounded expertise in enterprise search. Kazeon is thus a more compelling acquisition because EMC can position its search technology and expertise as a more strategic application and expand further into enterprise search, which is one of the few sectors of the software industry that didn’t miss a beat despite the downturn.

Saturday, August 15, 2009

RenewData Receives $4M in Funding, Acquires Digital Mandate

RenewData grabs $4M in funding

Information management company RenewData Corp. has received $4 million of a planned $6.1 million financing.

Austin-based RenewData got the funding from four investors, according to a filing with the U.S. Securities and Exchange Commission. Earlier this week, RenewData officials revealed that the company had acquired New York-based Digital Mandate LLC for an undisclosed amount.

RenewData Acquires Digital Mandate, Adds Innovative Vestigate Document Review Software to eDiscovery Technology Portfolio

AUSTIN, TX - August 12, 2009 - RenewData, a leading provider of services for the discovery, archiving, and governance of electronically stored information (ESI), today announced it has successfully completed an acquisition of Digital Mandate, provider of discovery lifecycle management solutions including Vestigate document review software. This acquisition further strengthens RenewData's commitment to investing in technology that delivers market leading information governance solutions, significantly lowers costs to clients, and meets requirements for both legal and IT professionals. To support the acquisition and other growth initiatives, existing investors ABS Capital Partners and CIBC Capital Partners provided the equity financing.

Monday, July 20, 2009

Encore Discovery Solutions Retires Long-Term Debt

Phoenix, AZ, July 15, 2009 - Encore Discovery Solutions, an industry leading knowledge-based provider of electronic discovery and related services, today announced that it has retired its long-term debt and, except for a revolving line of credit to finance accounts receivable, now operates 100% debt free.

With no long-term debt, Encore is better positioned than most electronic discovery service providers to fulfill long-term obligations to its clients. "Our clients can remain secure in the knowledge that Encore will be here to serve them," said Greg Mazares, Encore's CEO. "Our balance sheet is strong and our positive operating performance indicates that we will be an industry leader for a long time."

Encore has invested in reinventing itself from a paper-based imaging company to a knowledge-based provider of electronic discovery, web hosting and related services. Elimination of debt service requirements will allow the company to invest further in talented professionals and technology. "We have enjoyed much success since embarking on our strategic transition in 2006," added Mazares. "We will continue to deliver outstanding service and results by supporting our clients with great people, sophisticated tools and innovative solutions."

Wednesday, June 10, 2009

Anacomp Receives $7.5 Million in Financing from Bridge Bank

San Jose, CA - June 9, 2009 - Bridge Capital Holdings (NASDAQ: BBNK), whose subsidiary is Bridge Bank, National Association, a full-service business bank headquartered in the Silicon Valley region of California, announced today, it has provided financing to Anacomp® Inc., to support its eDiscovery initiatives.

"This credit agreement provides increased financial flexibility and liquidity," said Jeff Cartwright, Anacomp's Chief Financial Officer. "Our ability to access incremental capital in this difficult credit and economic climate underscores the success of our company's ongoing transformation, most notably in the eDiscovery market, where our penetration into the AMLaw250 and corporate client base, as well as the reseller community serving these customers, demonstrates our momentum in becoming a market leader in this fast growth industry."

Anacomp® Inc., is a leading business process solutions company, which has obtained a $7.5 million credit facility to accelerate its various strategic initiatives, which include expanding its presence in the eDiscovery market as a leading provider of litigation support consulting, services and solutions.

Wednesday, May 20, 2009

USIS Acquires Professional Services Firm Labat-Anderson

FALLS CHURCH, Va.--(BUSINESS WIRE)--US Investigations Services, Inc. (USIS), the largest commercial provider of security investigation services to the federal government, a leading provider of pre-employment screening solutions, and a top provider of information services to the insurance industry, announced today the close of the financial transaction and acquisition of Labat-Anderson, Incorporated, a professional services firm serving government agencies in the areas of litigation support and information systems and services. Terms of the transaction were not announced.

“The Labat-Anderson business and its team of professionals adds to the solutions we provide our government customers and creates additional momentum behind our corporate strategic growth initiatives in the government markets we serve,” said Mike Cherkasky, Chief Executive Officer of USIS. “This is another significant step forward for our growth initiatives in the government sector of our business, adding another suite of solutions that we can deliver to the markets we serve.”

Labat-Anderson, with its more than 700 employees, will operate as a stand-alone division in USIS’ Government Solutions Group (GSG), joining the Investigative Services Division and the National Security Division. With its headquarters in Falls Church, Va., USIS GSG already has more than 6,500 employees that support business operations in all 50 states, U.S. territories, and overseas.

USIS and its controlling stockholder, Providence Equity Partners, are receiving legal advice from Debevoise & Plimpton LLP.

Monday, April 27, 2009

Kazeon Secures $10 Million in Funding

Kazeon Systems, a company that specializes in software used for electronic investigations and discovery of buried network information, just brought in $10 million in sixth-round funding from JK&B Capital, Clearstone Venture Partners, Menlo Ventures and Redpoint Ventures, reports peHub. Based in Mountain View, Calif., the firm had previously banked $65 million in capital since its inception in 2003.

Among the processes it streamlines, Kazeon focuses on information management for advanced security and privacy, record-keeping and compliance and risk calculations.

Friday, April 17, 2009

Unify to Acquire AXS-One

ROSEVILLE, Calif., – April 16, 2009 – Unify Corp. (NASDAQ: UNFY), a global provider of application development, database and migration products, today announced that it has entered into a definitive agreement to acquire AXS-One (OTCBB: AXSO), a leading provider of integrated content archiving software solutions. The acquisition, which is subject to approval by the stockholders of Unify and AXS-One, is expected to close by the end of Unify’s fiscal first quarter, ending July 31, 2009.

Through the agreement, Unify will purchase all outstanding shares and debt of AXS-One in an all-stock transaction valued at approximately $8.0 million, based on Unify’s closing stock price yesterday, subject to certain closing adjustments.

The acquisition is expected to create a more competitive, cost efficient company with a larger customer base, increased maintenance revenues and a significant growth potential. AXS-One’s 2008 revenues were $13.4 million, up 12% over 2007, including approximately 48% recurring maintenance revenue. Based on the expense reductions previously implemented by AXS-One and the further cost savings expected post closing, Unify expects the transaction to be accretive on a non-GAAP basis by the end of its fiscal second quarter, ending October 31, 2009.

Thursday, April 16, 2009

Legal Support Industry - Investor Report: by VRA Partners

This report, published by VRA Partners in April 2009, provides details about the following topics & trends in the legal support industry: Litigation Support, Law Firm Technology & Services, Sector M&A, Sector Private Equity and Sector Public Markets; along with a list of the transactions (listing target and acquiring companies) dating back to January 2008. Below are a few excerpts.

The United States legal support sector is unique in both its size and importance. The country’s predilection for litigation and complex regulation supports an industry that has the most lawyers, and the most lawyers per capita, of any country in the world. As a benchmark of the legal support sector’s size, the U.S. supports approximately 250,000 law firms that represent a $235 billion market. Historically, this market has exhibited consistently strong growth. According to Hildebrandt International, law firms experienced unprecedented double-digit annual revenue growth between 2001 and 2007. Due to these size and growth characteristics, the legal support sector has been an increasingly attractive sector for technology and service providers, as well as investors.

Impact of Recession:
Though the legal market has historically demonstrated strong growth and resistance to economic downturns, productivity began to decline in 2007 as the economy softened. 2008 marked the worst year in the legal market in 20 years due to sharp downturns in real estate, structured finance and transactional practices, such as capital markets and merger and acquisition activities.

“Current economic conditions will further prompt corporations and law firms to utilize cost-lowering technologies, low-cost service providers and additional

Trends Unrelated to the Recession:
Notwithstanding the current economic environment, significant trends have influenced the legal support sector. Two of the most significant trends are:
- Increased complexity of the discovery process due to the proliferation of electronic documents and communications
- Growth, consolidation and globalization of law firms to meet the needs of their growing, global corporate clients

“We expect to see significant merger activity over the next 12 to 24 months between firms whose growth has stalled and are unable to generate significant, consistent profitability due to the required infrastructure and the volatile nature of the revenue streams they are generating.”

“The cost of review is estimated to be approximately $5 to every $1 of EDD processing, which would estimate the total market for review services to be over $10 billion.”

Recent M&A Issues:
- Overall market conditions and credit crisis
- Several failed sale processes of EDD businesses due to the inability to achieve desired valuations
- Track record of private equity (“PE”) firm investments in the sector that have either failed, sold for a fraction of cost, or restructured to survive

Why the sector is still attractive for M&A and private equity:
- Long-term growth sector
- Dynamic market
- Many companies are still achieving very attractive margins (20%+ EBITDA)
- Importance of scale
- Significant market fragmentation

You can download the entire 15 page Legal Support - Industry Review report from the VRA Partners' website.

StoredIQ Secures $8 Million Financing

Austin, TX. – April 14, 2009 — StoredIQ Inc., a leading provider of Intelligent Information Management and eDiscovery technologies, today announced that it has closed an $8 million investment financing from its existing investors, including S3 Ventures and Techxas Ventures. The company also announced that it has added industry veterans Dan Junk as vice president of business development and Ellis Ishaya as vice president of partner development to its management team.

"StoredIQ’s product offering is unique, because it provides a unified, easy to deploy platform that meets the compliance, eDiscovery and information management requirements of the enterprise, while contributing to immediate cost and risk reductions," said Christine Taylor, analyst with Taneja Group. "Couple a great product with substantial market demand, add this type of funding in the current economic climate and StoredIQ is well-positioned to become a market leader."

StoredIQ will use the financing to expand its award-winning information management and eDiscovery solution, grow its industry partnerships and accelerate the company’s marketing and distribution initiatives to take advantage of the significant market opportunity that lies ahead. The eDiscovery market, which is about $3 billion to $4 billion in size, is expected to double in three years, according to Robert W. Baird & Co analyst Andrea Wirth, quoting industry findings.

Monday, April 06, 2009

Litigation Support Company For Sale

The following overview was sent to me by BCMS Corporate . I have no additional information about the company other than what is listed below, but thought it may be of interest to my readers. If you are interested in receiving additional information, please see contact information at the bottom of the post.

Key Facts:
Location Mid-Atlantic Region
2008 Revenue $1.70 Million
Employees 15

Business Overview:
• A business to business service company that provides premium-quality professional and mission critical document management services to the business and legal industries

Specialty Areas:
o Proposal Production – complex and deadline driven document printing and assembly of multi-million dollar proposals – “white glove service”
o Litigation Support – time sensitive and intricate paper and electronic data discovery and trial support services
o Document Production – Total management and preparation of business meeting, conference documents and other materials
• Exceptional client service provided by a team of industry professionals
• High quality products produced in a state-of-the-art facility with the latest industry technology and equipment that accommodates complex last minute alterations and production

Customers and Markets:
• Business - clients range from small consulting firms to Global Fortune 100 companies
o firms in need of proposal production services to secure government contracts. The value of client proposals supported is in the tens of billions of dollars.
o companies that need meeting, conference, presentation and training materials
o companies that need paper and digital archiving
• Legal - clients include a spectrum of tier-1 law firms, general practices and corporate counsel of private and public companies
• Associations and non-profit organizations – in need of meeting, conference, presentation and training materials

The Opportunity:
• A rare opportunity to acquire a Company with a proven process in delivering excellence to both niche and conventional industries
• A client base comprised of many tier-1 businesses including relationships that extend to the senior leadership level
• A firm with an applicable and scalable business model
• Excellent future growth potential
• A Company with 99% customer retention rate
• Business based on referrals as a result of proven quality assurance processes and professional client service standards
• Ability to successfully perform large, complex, and time-sensitive digital document production projects
• The Company consistently performs above demanding clients expectations
• The Company is very active in a resilient economic region and supports Companies that pursue state, local and federal government opportunities

Contact Information:
For more information or to request a NDA please e-mail or call Alon Hillel-Tuch at 212-520-8373 or alon.hilleltuch@bcmscorp.com.

The information one would receive after an executed NDA would be a full memorandum with company identity, operational overview, 3 year’s historical financials and future projections.

Thursday, April 02, 2009

Article Overview - Fragmented e-discovery space to see spike in deal making

Here is an interesting article by Bijoy Anandoth Koyitty posted on Reuters about how acquisitions will play a part in the growth plans of some of the larger companies in the e-discovery space. You can click on the heading above to view the entire article. A few key exerpts....

BANGALORE (Reuters) - In mid-2000, as the dotcom boom was peaking, executives of information protection firm Iron Mountain Inc noticed an interesting trend while doing PC back-up and e-mail archiving for their clients.

Customers were increasingly demanding a system that would help them search and retrieve documents from complex file back-ups for producing as evidence in litigation, internal investigations and regulatory inquiries.

Nine years since, the technology, known as electronic discovery, has spawned a highly fragmented $3 billion industry, and the bigger players are now eyeing acquisitions to broaden their customer base.

"There are many smaller players with revenue, but not many with critical mass. Some have decent products. So the business is ripe for consolidation," Sidoti & Co analyst David Gold said.

In the nascent years of e-discovery, Iron Mountain responded to its customers by offering existing solutions. Later, in 2007, when it found that time was ripe for serious investments, it got aggressive with the acquisition of e-discovery firm Stratify.

Along with Iron Mountain, several other companies like FTI Consulting, Epiq Systems and Guidance Software and privately held firms such as consulting giants Ernst & Young, KPMG, Deloitte and PricewaterhouseCoopers, are competing for a bigger share of the market.

In the last five years, the market saw as many as 18 acquisitions, according to technology research firm Gartner.

Recent ones include business advisory firm FTI Consulting's deal for Attenex and Seagate Technology's acquisition of MetaLINCS.

Larger players such as IBM, EMC Corp and Symantec Corp operate in the technology platform solution segment of e-discovery.

... Analysts believe it is important for companies to focus on acquisitions that are technology specific and build a complete platform at this point in time, than go in for roll-up acquisition that targets a rival's turf.

Companies will not be able to gain considerable market share through roll-up acquisitions presently because of the fragmented market, and any such action would be a "very risky process," analyst Mark Schappel of Benchmark Co said.

"We will consider acquiring technology that rounds out our core capabilities and integrates well with our technology," Guidance Software CEO Victor Limongelli said.

... The years that followed saw regulations getting stringent on e-discovery and an amendment in December 2006 made it mandatory to include electronically stored information in initial disclosures.

"E-discovery is something that organizations have to do these days, regardless of other technological investments," said John Bace, an analyst with Gartner.

Thursday, March 19, 2009

Iron Mountain Planning Investments in E-Discovery

BANGALORE (Reuters) - Iron Mountain Inc (IRM.N), which provides information protection and storage services, is eyeing firms with expertise in electronic discovery as it plans to expand in the fast-growing litigation support services market.

"It is an area we intend to invest very aggressively," Chief Executive Bob Brennan told Reuters in an interview.

E-discovery helps firms gather, restore, search, organize and deliver electronic data for using it as evidence in litigation, internal investigations and regulatory inquiries.

An increasingly litigious society, a growing number of federal, state and industry regulations, and the requirement for more information are the key trends helping e-discovery to grow, Brennan said.

"We believe it will be quite a large market opportunity for us for a long time," said Brennan.

Boston, Massachusetts-based Iron Mountain entered the e-discovery market in 2007 by acquiring privately held Stratify. In 2008, revenue from the unit rose more than 30 percent.

Friday, March 13, 2009

iDiscovery Solutions Acquires iFramework

March 12, 2009 -- Intelligent Discovery Solutions, Inc. (iDS), announced today, effective December 31, the acquisition of iFramework, an innovative litigation support software company. iFramework's tools are used by litigation support departments of large law firms and corporate legal departments around the country.

According to CEO, Dan Regard, "Our corporate and law firm clients have repeatedly told us that project management, not data processing technology, is their greatest concern. iFramework meets that need and compliments the consulting and expert services that iDS is known for. Better yet, it is a technology that we can train, or that they can modify themselves."

The technology embodied in iFramework is proven, repeatable, and shareable. "With iFramework, iDS finally provides litigation support teams with the only tool specifically customized for the efficient and effective execution of electronic discovery projects. We are finally enabling companies to truly, "Do-it themselves."

"We are excited about the opportunity to merge with iDS," said John Rowley, President of iFramework and now Director with iDS. "iFramework has made significant strides over recent years in transforming ourselves into an organization that is squarely focused on creating easy-to-use software tools that meet the needs of our litigation support clients. In addition, the acquisition will increase our capacity to deliver even more innovative and client-focused tools to our litigation support clients."

Tuesday, March 10, 2009

RVM Acquires G-9 Technologies Forensic Practice

New York, NY- March 9, 2009 -- The acquisition of G-9 Technologies forensic practice allows RVM to provide complete, end-to end discovery services to RVM's clients. Certified computer forensic engineer, Greg Cancilla,leads the RVM forensic team.

Mr. Cancilla, the former president of G-9 Technologies, was frequently retained by Am Law 100 law firms, Fortune 500 companies and entities within the European Union with matters before the Federal Courts, Department of Justice, Federal Trade Commission and the Security and Exchange Commission. Mr. Cancilla has forensically collected and analyzed data in the United States, Europe and Asia. Additionally, Mr. Cancilla has collected and analyzed data in accordance with the Federal Corrupt Practices Act ("FCPA") and the Hart-Scott-Rodino Antitrust Improvements Act ("HSR Second Request").

"We are excited about the acquisition of G-9 Technologies," said Vinnie Brunetti, CEO of RVM. RVM will now offer its clients a complete solution from early case assessment through production. G-9's team of highly skilled data professionals, possessing years of experience in data collection and harvesting is a tremendous addition to RVM's already talented team.

The team at G-9 Technologies is experienced in preservation, identification, extraction, documentation and interpretation of computer data using computer forensic tools.

About RVM, Inc.
RVM provides legal technology consulting, data forensics and litigation support services. Its team of experts, including industry savvy consultants, top-flight project managers and seasoned support personnel, assist law firms and corporations with their most demanding discovery and edata processing assignments. Paired with its proprietary e-data processing software, RVM delivers consistent, repeatable, and defensible results on time and under budget.
To learn more about RVM, call 1-800-525-7915 or visit www.rvminc.com

Thursday, February 26, 2009

LuciData Acquires eDiscovery Provider Juritek.net

MINNEAPOLIS, February 23, 2009 — LuciData Inc., a leading provider of eDiscovery and computer forensic investigative services and solutions, today announced it has acquired Juritek.net, Ltd, a Minneapolis based provider of eDiscovery services and solutions.

The combined company will operate under the LuciData, Inc. name and will offer law firms and corporate legal department’s eDiscovery services ranging from initial data collection, preservation, forensic analysis, complex search capabilities, online review and also document production services.

The acquisition is LuciData, Inc.’s first and is a reflection of their rapid growth and desire to expand into new eDiscovery services and markets. LuciData’s core business of computer forensic collection and analysis represents the beginning of the eDiscovery process as defined by the EDRM model (www.edrm.net). The addition of Juritek, which provides electronic data processing, review, and production services, allows them to offer a broader range of services to their clients and is more cost effective and easier to manage.

“More of our clients are looking for vendors that can provide a range of eDiscovery services under a single engagement model, said Jeremy Wunsch, founder and CEO of LuciData, Inc. Juritek shares our common vision of providing excellent customer service and cost effective services while leveraging the very latest in eDiscovery technology. They were a natural fit for the LuciData organization”.

Monday, February 23, 2009

Integreon Pays $9 Million for Bankrupt Onsite

As a follow up to my previous post titled Integreon Purchases Onsite3's Secured Debt Before Onsite3 Files Chapter 11 , it has been reported that Ayala Corp., the holding company of Integreon, paid $9 million for the bankrupt Onsite.

BussinesWorld Online News Story:
Rufino Luis T. Manotok, chief finance officer of the country’s oldest conglomerate, told BusinessWorld the firm, through BPO unit Integreon Managed Solutions, Inc., had bought Virginia-based On-site Sourcing, Inc. for $9 million.

"The company will focus on investing in the BPO industry. While its growth rate might slow down, the industry will still grow," Mr. Manotok said in an interview on Friday.

Last year, revenues of the local outsourcing industry went up by more than a quarter to $6 billion and are expected to grow by as much as a third this year.

"In times of stress that’s when opportunity will arise, and we do not want to be caught in a situation where there is [an acquisition] opportunity and we do not have the cash," he said.

Monday, February 16, 2009

Gartner MarketScope for E-Discovery Software Product Vendors 2008

Gartner evaluated 20 vendors across a number of criteria such as: Business Model, Customer Experience, Market Understanding, Sales Execution/Pricing, Offering (Product) Strategy, Product/Service, Sales Strategy and then rated them based on their findings.

Inclusion and Exclusion Criteria
To be included in the MarketScope report, a vendor must meet
the following criteria:
- Have a software product that can be licensed for implementation and use inside a company's firewall.
- Cover at least three of the functional areas of the electronic discovery reference model (EDRM).
- Have e-discovery related product and maintenance revenue equal to or greater than $10 million.

Overall rating of the Market/Market Segment was Positive.

Tuesday, February 10, 2009

Milestone Partners Back Callidus Acquisition of Black Letter Discovery

Black Letter Discovery is the first acquisition by Callidus, a new litigation support consolidation platform sponsored by Milestone, as noted in a recent press release.

Press release: Milestone Partners (“Milestone”) announced that it closed on capital commitments of approximately $230 million for its latest fund, Milestone Partners III, L.P. (“Milestone Partners III”), exceeding its $200 million fundraising target.

Once again Milestone has attracted a diverse investor base, including a wide range of institutional investors, family offices and entrepreneurs. In addition to the participation of nearly all of the investors in the $120 million Milestone Partners II, L.P., Milestone Partners III includes several new institutional limited partners, including public pension funds, insurance companies and funds of funds.

John Shoemaker of Milestone Partners remarked, “Everyone at Milestone appreciates the confidence that both our pre-existing investors and our new investors have demonstrated in our firm, especially in a difficult fundraising environment. We look forward to continuing our disciplined approach to investing in the new fund.”

Milestone has already completed four acquisitions through the new fund, including: Fatz Cafe, a casual dining restaurant chain; Safemark Systems, a provider of in-room hospitality safes; Global Connection, a marketer of prepaid wireline phone service; and Black Letter Discovery, the first acquisition by Callidus, a new litigation support consolidation platform sponsored by Milestone.

Friday, February 06, 2009

Integreon Purchases Onsite3's Secured Debt Before Onsite3 Files Chapter 11

Onsite3, which provides litigation-support services for law firms, filed for Chapter 11 bankruptcy protection Feb. 4 in the U.S. Bankruptcy Court for the Eastern District of Virginia in Alexandria.

It is the first time the Arlington-based company has filed for Chapter 11 in its 18 years of existence.

The company announced on Friday that it will be bought by Integreon, a provider of outsourced knowledge, legal, and administrative support services, both onshore and offshore. The transaction is expected to close within 45 days.

Onsite3’s lineup of electronic discovery offerings include data forensics and collections, data processing and hosted document review.

Integreon completed the acquisition Onsite3’s outstanding pre-bankruptcy secured debt and has agreed to provide debtor-in-possession financing to assure its continued operation throughout the reorganization process.

“There will be absolutely no disruption in service to our clients,” said Robert Ballou, chief executive of Onsite3. “We will discontinue only our paper related operations and we will transition this work to other vendors.”

Alexander Gallo Holdings' Family of Companies Renamed to Esquire

ATLANTA (February 3, 2009) – Today Alexander Gallo Holdings LLC, the nation’s leading provider of court reporting and litigation support services, announced that it has rebranded its family of companies under the name of its recently acquired brand, Esquire. Under the reorganization, Alexander Gallo Holdings LLC will remain the parent company of Esquire, which has been restructured into four divisions.

“Today we are introducing the ‘new’ Esquire, a name that is new to Alexander Gallo Holdings, but one with a long history in our industry -- and that now has the solid and stable backing of Alexander Gallo Holdings,” said President and CEO Alexander J. Gallo. “Of course, we will continue to serve our clients with a comprehensive range of products, state-of-the-art technologies and exceptional customer service,” said Gallo. “What is truly exciting, however, is that our new focus is on providing solutions to our clients’ business needs at every step of the litigation lifecycle.”

Sunday, January 25, 2009

E-Discovery Cloud Computing Marketplace Outlook

Cloud computing is coming to E-Discovery. If you are not familiar with it yet, you soon will be. In simple terms, cloud computing enables users to access services without expertise with, nor control over the technology that supports the service. It is, almost literally, like operating the service in a cloud. Depending on who you ask, many see it as a good thing, because many law firms and companies lack the ability or desire to work with infrastructure required for large scale e-discovery.

I have been reading more and more articles on the topic, including this recent one regarding the e-mail archiving company Proofpoint that appeared in the Wall Street Journal. Proofpoint recently acquired Fortiva, an email archiving software company.

Cloud Computing is defined by Wiki as Internet ("cloud") based development and use of computer technology ("computing"). It is a general concept that incorporates software as a service (SaaS), Web 2.0 and other recent, well-known technology trends, in which the common theme is reliance on the Internet for satisfying the computing needs of the users. An often-quoted example is Google Apps, which provides common business applications online that are accessed from a web browser, while the software and data are stored on Google servers.

Cloud Computing is similar to Saas (software-as-a-service) but there are differences as reported by Gartner in a recent report. The main difference is that “cloud computing” is more of the general concept about using the Internet to allow people to access scalable technology and services. Saas on the other hand is a model of software deployment where an application is hosted as a service provided to customers across the Internet and offered on a pay-per-use or via subscription. Many Saas solutions fall under the cloud computing definition, but to do so they must be "massively scalable", as defined by Gartner.

The underlying technology infrastructure to cloud computing is sometimes refered to as utility computing, which provides on-demand infrastructure with the ability to control, scale, and configure that infrastructure.

My prediction (and I am not alone) is that e-discovery cloud computing will make a significant impact on the EDD marketplace and how data is processed. I expect that software companies moving to a Web 2.0 platform and offering on-demand web-based solutions will gain significant market share over the next few years.

Friday, January 23, 2009

Autonomy Announces Agreement to Acquire Interwoven for $775 Million

CAMBRIDGE, ENGLAND - January 22, 2009 - Autonomy Corporation plc (LSE: AU. or AU.L), a global leader in infrastructure software, and Interwoven, Inc. (NASDAQ: IWOV), a global leader in content management software, today announced that they have entered into a definitive agreement under which Autonomy will acquire Interwoven. The combination of the two companies will redefine how global 2000 corporations, leading law firms and government regulators will discover, analyze and manage information and interactions.

Acquisition Highlights:
Under the terms of the Acquisition Agreement, it is proposed that Interwoven stockholders will receive $16.20 in cash for each outstanding Interwoven share, representing a premium of 36.8% to the closing share price of $11.84 on January 21, 2009, and a premium of 36.2% to the average closing share price over the 30 days through January 21, 2009.

Aggregate consideration of approximately $775 million (assuming exercise of all vested in-the-money Interwoven share options), funded by an underwritten placing of ordinary shares (the "Placing"), a new revolving credit facility from Barclays and a portion of Interwoven and Autonomy's cash reserves. Post-closing Autonomy expects to have a cash balance of at least $75 million, assuming close in Q2'09.

Friday, January 09, 2009

Document Technologies, Inc. Completes Recapitalization

Atlanta (PRWEB) January 8, 2009 -- VRA Partners, LLC is pleased to announce that Document Technologies, Inc. has completed a recapitalization transaction with a private equity investor. CGW Southeast Partners, a private equity firm based in Atlanta, Georgia, sold its ownership stake in Document Technologies while company management retained significant ownership in the business. VRA Partners acted as the exclusive financial advisor to Document Technologies. The transaction was led by Brock Matthias, Bill Sherman, Mark Loeffler, and Chris Surdo. The transaction closed on December 31, 2008.

Document Technologies, Inc. is the largest, independent end-to-end provider of litigation support and document management services in the United States. With a presence in 35 major U.S. markets, the company provides onsite facilities management services, offsite litigation support services, and electronic data discovery services. Document Technologies has been recognized as one of the industry's "Top 10 Electronic Discovery Services Providers" in the 2007 AmLaw Tech Survey and as one of the "Top 20 Overall Services Providers" in the 4th Annual Socha-Gelbmann Electronic Discovery Survey. Document Technologies has more than 1,600 employees and is headquartered in Atlanta, Georgia.

VRA Partners, an independent Atlanta-based investment bank, focuses on providing M&A services to middle-market companies and private equity firms. VRA Partners also assists companies with raising capital for growth, acquisitions, recapitalization, going-private and management buy-out transactions, and provides fairness opinions, valuations and strategic advisory services. The professionals of VRA Partners have completed more than 250 transactions across a broad range of industry sectors, including business services, consumer and retail, healthcare, industrial, media and technology. VRA Partners, LLC is a Member FINRA/SIPC. For more information, please visit our website at www.vrapartners.com.

Wednesday, January 07, 2009

Alexander Gallo Holdings Acquires Verdict Systems

ATLANTA (January 7, 2009) – Alexander Gallo Holdings LLC, the nation's leading provider of court reporting and litigation support services, announced today that it has completed an acquisition of Verdict Systems LLC of Tempe, Ariz., developers of the award-winning trial presentation software, Sanction(r), and the more comprehensive Verdical(r) package. The transaction includes all subsidiaries of Verdict Systems, including the service arm, Sanction Solutions LLC.

"We have always believed that first-class technology was essential to providing our clients the best service and support possible," said President and CEO Alexander J. Gallo. "This acquisition fulfills one of our primary goals, which is to offer our clients a complete suite of services to handle all of their litigation needs from discovery through trial. We are excited to now offer the industry's best software coupled with our second-to-none customer service and litigation and deposition services."

Verdict Systems' Sanction software enables clients to organize cases for litigation and trial presentation. The software allows the incorporation of audio, video, deposition transcripts, scrolling text, images, documents, animations and other forms of evidence for trial presentation with the simple click of a mouse. It also features annotation, zoom and hundreds of other capabilities to help dynamically engage the jury, which has been shown to substantially increase jurors' ability to understand and retain information.

Tuesday, January 06, 2009

Continuum Worldwide Acquires Focus Solutions

OMAHA, Neb. -- Continuum Worldwide, a subsidiary of Mutual of Omaha and a leading provider of operational risk management services, has acquired assets of Focus Solutions, an Omaha-based provider of eDiscovery and support services to the legal and corporate community.

The acquisition broadens the scope of Continuum’s services for managing all phases of the information security and compliance lifecycle. The terms of the transaction were not disclosed.

Going forward, Focus Solutions will operate as a branded service offering within Continuum Worldwide. Focus employees will be invited to transition to Continuum Worldwide and personnel changes are not anticipated. The acquisition will boost the company’s presence in the electronic evidence market, according to Continuum Worldwide President Jeff Schreiner.

“Our combined entity will provide legal and business customers with a unique, trusted source to deliver superior eDiscovery, digital forensics and industry-specific operational risk management services,” Schreiner said. “Our heritage, highly-skilled work force and Midwestern work ethic will also clearly differentiate us in this growing market.”

Founded in 2000, Focus Solutions is a privately held company with 64 employees and 2007 revenue of $7.9 million. The company operates nationwide with focus areas in Arizona, Florida, Iowa, Missouri and Nebraska, and is a Top 20 national provider of litigation support.