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.