Wednesday, December 08, 2010

Document Technologies, Inc. Acquires California Based Unlimited Discovery Group

ATLANTA – December 7, 2010 – Document Technologies, Inc. (“DTI”), the nation’s largest independent provider of comprehensive discovery and on-site facilities management services, announced today its acquisition of Unlimited Discovery Group, one of the largest and most established discovery services providers in Southern California. The addition of Unlimited Discovery Group, including both the company’s locations in Los Angeles and Century City, further expands DTI’s local presence in California and serves to better support both local and national sales efforts as well as DTI’s existing facilities management customer base in Los Angeles.

Unlimited Discovery Group was founded in 2000 when the electronic discovery industry was still in its early stages. A pioneer in the Southern California market in paper to digital and digital to digital workflows, Unlimited is regarded for its consultative approach to the discovery process. The combination of DTI and Unlimited Discovery Group’s offerings—along with their combined 30-plus years of experience in paper and electronic discovery—will provide clients a broader spectrum of tailored solutions to meet their needs.

Tuesday, December 07, 2010

Iris Data Services Acquires Capitol Discovery Services in Phoenix

PHOENIX, December 6, 2010 — Iris Data Services, a leading provider of discovery solutions, announced today that it has acquired Capitol Discovery Services, a major provider of full service litigation support including eDiscovery, computer forensics, imaging and coding to the Phoenix area. Capitol’s downtown location at 101 N. 1st Avenue, Suite LL10, Phoenix, AZ 85003, 602-462-5888, will be Iris’ first production center in Phoenix. Iris Data Services is a leading supplier of discovery solutions including eDiscovery, computer forensics, attorney document review, and online hosting utilizing their proprietary review platform, Unify™.

“The addition of Capitol Discovery and their experienced staff continues Iris’ national growth and gives us a production center in the Southwest to service our Phoenix and West Coast customers,” said the president of Iris, Major Baisden. “Capitol is a full service discovery company and allows Iris to offer local, end-to-end litigation discovery services to Phoenix area law firms and corporate legal departments.”

Sunday, November 28, 2010

DIGITS LLC and Avalon Merge to Form Strategic Partnership

Syracuse, NY. — Avalon and DIGITS LLC announced the completion of a Strategic Partnership, which will effect the merger of their high-end technology service offerings across New York State. Avalon has unmatched capacity for large and complex litigation productions and E-Discovery processing, which will complement the wide-ranging computer forensics, corporate investigations and network advisory services offered by DIGITS LLC. This partnership will combine Avalon’s statewide capacity for large and complex litigation productions with DIGITS’ unparalleled experience in computer forensics and complex corporate computer investigations gained from over 115 years of combined federal and state law enforcement careers. The partnership will allow both companies to enhance and support the services offered to their clients.

Avalon Legal Technology's President, J.P. Midgley, is excited about this new partnership stating, “The combined professionalism, court-recognized expertise, and qualifications of DIGITS LLC will bring additional value to our clients in the corporate and legal industries. Our alliance with DIGITS LLC will provide an additional enhancement to safeguard the data used to create these reports. DIGITS LLC experience in the law enforcement arena will allow our clients to talk to the cops without going to the police.”

Friday, November 19, 2010

Thomson Reuters acquires Pangea3

Thomson Reuters today announced that it has acquired Pangea3, a legal process outsourcing (LPO) provider serving corporate legal departments and law firms worldwide. Terms of the acquisition were not disclosed.

Pangea3 is is growing at more than 20 percent annually and projected to exceed $1 billion this year.

The firm is headquartered in New York and Mumbai, and has 650 employees at its major delivery centers.

Its client base includes Am Law 250 law firms and some of the world’s largest financial services, pharmaceutical, healthcare, food and beverage, technology and consumer goods companies.

The firm offers a variety of services in areas like legal document review; corporate transactions; intellectual property; and risk management and compliance.

Wednesday, November 17, 2010

KPMG Acquires Ledjit Consulting

TORONTO, Nov. 16 - KPMG LLP (Canada) announced today that it has acquired Ledjit Consulting Inc., Canada's premiere e-Discovery and Information Management (EDD/IM) firm specialized in the business of Bridging the Gap between IT and the Law®. With this acquisition, KPMG becomes Canada's first firm offering all of the Electronic Discovery Reference Model (EDRM), expanding on the services in which the firm is already a recognized leader. Ledjit's client base, including a variety of multi-national corporations, will benefit from KPMG's depth and breadth of Advisory knowledge and skills.

"The addition of Ledjit professionals and their e-discovery skills positions KPMG as a leading Advisor to corporations and law firms on how to proactively manage records from creation to destruction, and in the course of litigation and investigation. We are building on our ability to deliver strategies that enable organizations to become more efficient and effective in all sectors," said Bill Thomas, CEO and Senior Partner of KPMG.

Ledjit's former president, Dominic Jaar, is one of the few Canadians to be recognized as a North American thought leader in the information management field. He and his Ledjit colleagues are highly regarded in the legal community across the country and abroad. All members of the Ledjit team have joined KPMG and will work with the firm's existing E-Discovery practice by complementing it with an information management specialty.

Thursday, November 04, 2010

Huron Consulting Group Acquires TRILANTIC

CHICAGO--Huron Consulting Group Inc. (NASDAQ: HURN), a leading provider of business consulting services, today announced the acquisition of TRILANTIC International Limited, a top e-discovery business providing best of breed technology solutions to clients in Europe and the Middle East. The purchase further enhances the Company’s discovery offerings for clients globally.

“The addition of TRILANTIC bolsters our already robust document review services and Huron’s streamlined e-discovery solution, V3locity,” said James H. Roth, chief executive officer, Huron Consulting Group. “TRILANTIC’s expertise in Europe and the Gulf region will allow us to better serve our global clients on discovery and related legal matters. We are pleased to welcome TRILANTIC to Huron’s Legal Consulting team.”

TRILANTIC, based in London, specializes in e-discovery services and delivers solutions to law firms and legal departments worldwide that combine IT proficiency and a detailed knowledge of the EU data protection rules. Approximately 15 employees will join the Company, including Nigel Murray who will serve as a Huron managing director. Murray began his career in legal technology and has been at the forefront of electronic document management services since the early 1990s. Murray is considered a leader in the e-discovery industry in Europe. Terms of the acquisition were not disclosed.

Wednesday, October 27, 2010

Wave Software Acquires E.L. Native Review from Electronic Legal Software, LLC

ORLANDO, FL and DENVER, CO (October 25, 2010) - Orlando-based Wave Software, a leading provider of early case assessment, legal hold, litigation support and electronic data discovery technology for global corporations, today announced that it has acquired E.L. Native Review from Electronic Legal Software, LLC. E.L. Native Review for LexisNexis Concordance® streamlines the native document review process by displaying a document without the need to have the native application installed (e.g., Microsoft Office®). E.L. Native Review is currently integrated into Wave Software’s Trident Pro and the acquisition allows Wave Software to control more aspects of discovery technology from data creation to production and storage. Financial details of the acquisition were not disclosed.

Trident Pro’s culling and de-duplication module, along with its native file viewer, gives legal teams a clear picture of the type and volume of data that exists in a discovery collection. At this stage of pre-processing, only potentially relevant data is automatically bridged from Trident Pro to common review platforms such as Concordance, where reviewers can then mark documents as privileged or responsive. Concordance is a sophisticated case management software program designed to bring greater efficiency to case preparation by creating one consolidated database for searching, reviewing and annotating documents.

Trident Pro and E.L. Native Review combined extends the capabilities and functionality of Concordance and other common document review platforms. Trident Pro culls, de-duplicates and identifies near-duplicate discovery data in an easy three-step process. It has reduced data collections by about 25 percent, thus reducing the overall amount of time and money spent by clients for processing and attorney review.

Tuesday, October 19, 2010

Grant Thornton UK Acquires UK eDiscovery Provider Legal Inc

Leading financial and business adviser Grant Thornton has announced the acquisition of litigation support and eDiscovery consultancy, Legal Inc to further enhance its forensic advisory service.

Disclosure is a fundamental to any case and goes to the core of any judicial decision that is made. As more business is communicated electronically in the form of emails, computer discs and data held on electronic devices including mobiles and blackberries the significance of e-disclosure has become paramount.

Legal Inc is an established business with an experienced team of 14 who use leading software solutions to deal with how information is now stored by businesses. Legal Inc will enable the Forensic advisory team to search, review and manage the large amount of data that is part of forensic investigations. In addition they will continue to provide solutions to existing clients which include corporate counsel, law firms and Government regulators on early case assessment to file review and electronic presentations.

Audio Search Provider Nexidia Secures $23 Million In Funding

ATLANTA, GA. – Oct. 18, 2010 – Nexidia, the market-leading provider of audio search and speech analytics solutions, today announced that the company has received over $23 million in new equity funding to extend business growth and technology leadership in its key markets. The funding will be used to further develop and protect original research in its core technology and intellectual property, and to increase the company’s operational capacity in the contact center and other markets worldwide.

New investors in this round are BlueCross BlueShield Venture Partners, Sandbox Industries and HarbourVest Partners. They join existing investors HIG Ventures, Paladin Capital Group, Boston Millennia Partners, Morgan Stanley and Cordova Ventures, all of whom added to their equity stake in the company.

"When we invest in high growth companies we look for reliable predictors of commercial success," said Ian Lane, Vice President at HarbourVest Partners. "The company must have a differentiated and defensible technology, provide a substantial and tangible ROI to their customers, show demonstrated traction addressing a large market opportunity, and be led by a management team with a proven ability to execute in a fast paced environment. In Nexidia's case, the team has utilized their patented phonetic technology to create a portfolio of applications that address the universal challenges of creating better products, delivering more effective customer service, and improving profitability."

Saturday, October 16, 2010

D4 Forms Alliance with Canadian eDiscovery Leader Commonwealth Legal

Rochester, NY October 9, 2010 -- D4, LLC, headquartered in Rochester, NY, USA and Commonwealth Legal Inc., of Toronto, Canada have officially bridged their end-to-end eDiscovery services across the border, forming the first alliance of its kind in the eDiscovery industry.

“No other organization in this industry spans all of North America,” says John Holland, CEO of D4. “Our coverage just became the largest in the continent! For some time it’s been our goal to offer local coverage of our services throughout the U.S. Expanding our reach across Canada, in conjunction with Commonwealth Legal, seems like a natural fit and a good progression to our model of serving local markets.”

D4 offers eDiscovery and Computer Forensic services and maintains offices in New York, Los Angeles, San Jose, San Francisco, Omaha, Denver, Lincoln, Grand Rapids, Charlotte, Washington DC, Tampa, Buffalo and Rochester and is currently in the process of opening new offices in Boston and Albany.

“It just made sense,” says Peter Coons, Senior Vice President of D4. “There are countless companies in both Canada and the US that are forced to deal with cross-border litigation. This relationship allows both companies to provide clients with seamless cross-border eDiscovery by addressing and solving jurisdictional issues, differentiations in data hosting requirements and differences of law. The alignment also allows both companies to better serve current client bases and combine our expertise and efforts to essentially form an all-in-one eDiscovery juggernaut.”

Thursday, October 14, 2010

IBM Acquires PSS Systems

ARMONK, NY — October 13, 2010 — IBM (NYSE: IBM) today announced that it has acquired PSS Systems, a privately held company based in Mountain View, Calif. Financial terms of the deal were not disclosed.

PSS Systems' software helps organizations analyze, automate and implement information governance policies across massive amounts of electronic business information and dispose of that information in an automated way. These capabilities are critical elements to remaining responsive to legal obligations while reducing data storage costs.

As information continues to grow at exponential rates, companies across a wide range of industries are looking for ways to reduce the costs of collecting, processing, reviewing and storing information by setting information disposal policies that can meet legal requirements.

To improve the management of data and these increasing legal obligations, Chief Legal Officers and CIOs are investing in software to automate and implement routine enforcement of information governance and retention policies. Needlessly retaining information increases business risk, impedes the ability to respond to legal requests, and puts costs restraints on organizations in every industry.

Wednesday, October 13, 2010

StoredIQ Secures $10 Million Investment

Austin, TX. – October 12, 2010 – StoredIQ Inc., a leading provider of Intelligent Information Management solutions for eDiscovery, records and compliance management, today announced that it has closed $10 million in new investment financing and expanded its management team in preparation for accelerated growth. The financing round, led by PerformanceEdge Partners and existing lead investor S3 Ventures, provides the company with the funds needed to extend its marketing and sales initiatives and grow new partnerships. The company also announced that it has appointed Phil Myers as the new CEO and H.E. Buddy Wilson as vice president of business development to lead those efforts.

StoredIQ has rapidly gained traction with customers across several vertical industries, including financial services, healthcare and oil and gas. This successful round of funding continues StoredIQ’s impressive momentum and growth marked by expanded partnerships with Symantec and Dell, the recent launch of StoredIQ Intelligent Information Management Platform 6.0 and its market-leading eDiscoveryManager application, as well as numerous industry recognitions including KM World 100 Companies that Matter, Network Products Guide 2010 Product Innovation Award, and Info Security 2010 Global Product Excellence Award.

“StoredIQ’s unique approach to addressing real and critical problems that large organizations face in understanding and managing the unprecedented growth of their information repositories is changing the game for its enterprise customers,” said Phil Myers, CEO of StoredIQ. “80 to 85 percent of corporate data today resides in unstructured files, email, SharePoint and other sources that are largely invisible to the company, creating high risk and management costs. I am delighted to join StoredIQ’s leadership team and capitalize on the tremendous market opportunity that now exists to solve this critical information management problem.”

Sunday, October 03, 2010

Stroz Friedberg Receives $115MM Investment from New Mountain Capital

September 30, 2010 -- NEW YORK -- Stroz Friedberg’s unsurpassed expertise in managing digital risk and uncovering digital evidence has helped attract a $115 million investment from New Mountain Capital to fuel and accelerate the company’s growth.

“This investment is with the perfect partner and happens at the perfect time,” says Eric Friedberg, Co-President of Stroz Friedberg. “Over the next three years, the firm plans to expand to key markets in the U.S., Europe, the Middle East, and Asia, as well as broaden its service offerings beyond digital forensics, electronic discovery, cyber-crime response, and investigations to include forensic accounting and intelligence services for businesses. New Mountain is the ideal partner given its strong experience and skill in scaling successful mid-sized organizations into larger companies worthy of public investment.”

Founder and Co-President Edward Stroz says the investment will help Stroz Friedberg meet clients’ increasing digital needs.

“Our clients are demanding more of our expertise for malware analysis, forensic accounting, and e-discovery,” says Mr. Stroz, “and New Mountain Capital shares our vision about the best way to scale and deliver our expertise in the marketplace.”

New Mountain Capital, a New York based investment firm, currently manages more than $9 billion in aggregate capital commitments.

“Data security and digital forensics represent a challenge that touches all businesses, and considering the heightened technological and regulatory risks of today’s world, the need for these services will only intensify,” says Alok Singh, Managing Director of New Mountain Capital. “Stroz Friedberg is a company with a sterling reputation based on the superior quality of its work and its people. We’re excited to be able to help this firm build upon its existing successes.”

New Mountain Capital will own approximately 50 percent of Stroz Friedberg, with the remaining ownership shared by Greenhill Capital Partners II LP, Stroz Friedberg’s initial private equity investor, and Stroz Friedberg’s employees.

Friday, September 24, 2010

Document Technologies, Inc. Acquires Daticon EED

As I noted in a recent post, the fourth quarter seems to be shaping up to be very active in regards to funding in the eDiscovery space.

ATLANTA – September 20, 2010 – Document Technologies, Inc. (DTI), the nation’s largest independent provider of comprehensive discovery and on-site facilities management services, announces its acquisition of Daticon EED, one of the original and most widely recognized leaders in the electronic discovery services industry. DTI and Daticon EED’s combined operations strengthen its position as a top tier discovery service provider that can offer both corporate law departments and law firms the infrastructure of a large, national company. Clients will receive personal service from local experts based in more than 20 offices nationwide. The acquired company will be called “EED, A DTI Company.”

“As one of the first providers of electronic discovery services, Daticon EED brings an unparalleled level of knowledge and expertise in directing technologies and processes to significantly reduce the overall cost, time and risk of discovery,” said Document Technologies, Inc. CEO John Davenport, Jr. “At the same time, Daticon EED’s clients will benefit from our ‘best-in-breed’ philosophy and financial stability.” DTI is now a $130 million company, including more than $70 million in revenue from discovery services. Discovery revenue combined with the consistent revenue of its facilities management services division have helped the company achieve profitability in 35 consecutive quarters.

The acquisition further expands DTI’s national footprint and advances the company’s ability to provide local service and expertise across the U.S. The deal also adds an impressive roster of leading discovery consultants and skilled project managers as well as world-class IT infrastructure to further strengthen the company’s ability to provide expert advice and high-quality service. The former headquarters of Daticon EED in Seattle will serve as DTI’s newest Regional Technology Center, providing clients with access to large data centers on both coasts. Between its state-of-the-art National Technology Center in Atlanta, Regional Technology Centers in Seattle as well as Washington, D.C., New York, Chicago, and Norwich, Conn., and facilities in local markets nationwide, DTI now has the capacity to process 4.5 terabytes of data on a daily basis and host 1.4 petabytes of data for document review.

Sunday, September 19, 2010

Investment Fund Seeking eDiscovery Acquisition Opportunities

A private investment fund (investor) has formed to locate, acquire, and operate a small to mid-sized company while increasing its value using proven management methodologies and capital restructuring as needed. Investor is looking for profitable companies in the e-discovery industry. Investor represents the capital and experience of a team of seasoned operators, entrepreneurs, and investors that are dedicated to creating long-term value. Investor’s energetic management team is committed to ensuring the long-term growth while preserving the culture, reputation, and customer relationships of any investment it undertakes. Investor has the ability to close deals quickly without the need for extensive bank financing and they offer attractive liquidity options for owner/operators seeking to exit the day to day management of their business.

Investor provides liquidity to business owners, supply capital for growth and ensures continuity to customers, employees and the community. Investor operates in an ethical and principled manner based on deeply held values of integrity, hard work, fairness, and transparency.

Investor’s mission is to build long-term value through acquiring, operating and growing a privately held business. Value creation may include extensions of existing product and service lines, augmenting sales and marketing functions, improving internal work processes, and employing innovative incentive and HR programs. It may also include external growth, when appropriate, through additional acquisitions and expansion into new service lines and geographic territories. Investor seeks to partner with highly ethical management teams that share our enthusiasm and hands-on approach to building and growing world-class enterprises.

Investment Focus
- Revenues between $8-50M
- EBITDA $1.5-6M
- EBITDA Margin of 15% or greater
- Transaction value of $10-50M

- History of strong free cash flow and profitable operations
- Recurring revenue streams
- Senior management seeking to exit or partner with a new management team

- Well positioned in the eDiscovery industry or sub-industry
- Opportunities to create sustainable competitive positions
- Large market with fragmented industry structure

- Committed to management team
- Committed to growth
- Owner seeking liquidity and transition of operational responsibility

Value Proposition
As entrepreneurs themselves, investor recognizes that selling a business is an emotional process. Successful businesses are the product of years of hard work and dedication. Investor's team is comprised of a well respected group of executives, entrepreneurs, and investors, with extensive and diverse experience in managing, investing in, and growing businesses. The collective experience of the managing partners and the advising team allows investor to anticipate issues early in the process, enabling investor to facilitate a smooth transition. Investor understands that a long, drawn out sale process puts significant stress on the organization. Investor has capital ready to deploy and will work diligently to complete a transaction within the time-frame and terms originally agreed upon. Investor's number one priority is the continued success of the business and all of its stakeholders.

Investor is interested in acquiring a business at a fair market value that represents the company’s history of success and potential for growth. Investor's partnership structure provides them with flexibility to tailor a transaction to meet a business owner's needs with regard to liquidity options, tax issues and family members who may want to remain involved in the business. Investor support owner’s continued involvement in the business.

All discussions are held in the strictest of confidence.

If you are interested in learning more, please contact me at and I will be happy to make an introduction. Serious inquiries only please.

Saturday, September 18, 2010

eDiscovery Funding Activity Picks Up

Although there has not been much funding news lately, investment interest and activity does seem to be picking up. Over the last couple weeks I have talked to companies and individuals on both the sell side and the buy side of the E-Discovery space, that are looking for opportunities. As an example, I received calls from two companies looking for equity and debt investors, and have talked to a couple active Investment Banking firms that are currently looking for acquisition targets. I expect the fourth quarter to be fairly active with funding news. Stay tuned...

Saturday, September 04, 2010

IE Discovery Invests in Discovery Workflow Provider eDirect Impact

AUSTIN, TX--(Marketwire - August 10, 2010) - IE Discovery, a leading provider of comprehensive Discovery Management solutions to the legal community, announced today it has acquired a majority interest in eDirect Impact. The investment will provide eDirect Impact with additional funding for development of its market-leading discovery workflow management technology, eManage. In addition to its equity stake, IE Discovery has an exclusive license to deploy eManage workflow management technology in the corporate and government markets.

As more clients wish to deploy disparate technology solutions, eManage fills a critical need for a universal platform to connect and integrate popular e-discovery products such as IPRO and review tools such as Concordance, Summation and iConect, as well as IE Discovery's proprietary discovery platform, InfoDox. eManage ties together the tools of choice for clients and their outside counsel, providing the management platform required for true centralized project management of discovery projects across firms, projects and technologies. "Our ultimate objective is to provide a platform that integrates seamlessly with existing e-discovery products and services," said Chris May, CEO of IE Discovery. "This strategy will allow us to be more technology agnostic and will remove many barriers of adoption."

eManage is built, in part, on the SharePoint platform that is already in place at more than two-thirds of companies(1). It simplifies the project management aspect of electronic discovery, while automating workflow and providing real-time reports to clients and counsel. It works across platforms and increases client control by providing real-time visibility into all discovery, no matter what technology is being applied or which law firm is handling the matter. eManage reduces discovery risk by providing detailed, real-time information enabling greater control over projects, while lowering the overall costs of discovery by creating time and cost efficiencies throughout the discovery process. IE Discovery's equity investment will allow eDirect Impact to continue to enhance the functionality of eManage and provide greater integration with a wider array of electronic discovery applications and review platforms.

Thursday, July 15, 2010

Thomson Reuters Acquires CaseLogistix From Anacomp

Monica Bay reports in Law Technology News on July 14, 2010

In what signals a significant move into the e-discovery market, Thomson Reuters has purchased CaseLogistix from San Diego's Anacomp. Terms of the deal were not announced.

CaseLogistix offers document review, data ingestion, and production tools to help litigation teams manage the electronic discovery review process, says TR. "The acquisition is a critical next step in furthering the Thomson Reuters litigation strategy," says Allison Guidette, TR Legal's vice president and general manager of litigation (and formerly an executive with Merrill Corp.). The CaseLogistix team will be under her umbrella.

Tom O'Connor, a longtime member of LTN's Editorial Advisory Board, served as an independent consultant for CaseLogistix from 2006-2009, writing white papers, and conducting webinars and focus groups about e-discovery processes. The acquisition, he says, shows that there's been no slowdown in the efforts of large companies aquiring small EDD firms, in order to create "end-to-end" offerings. "More specifically, this signals to me that TR is serious about that market, and is finally taking steps to counter the immense EDD and litigation support market presence of LexisNexis."

Says Craig Ball, LTN's EDD columnist, says "it's exciting to see Thomson dipping its toe in the e-discovery ocean. Acquiring CaseLogistix suggests the emergence of a broader EDD strategy, because CaseLogistix , by itself, does not an EDD vendor contender make." The more intriguing question is what the sale means for Anacomp's future, as it had reportedly divested itself of at least one other acquisition to focus on CaseLogistix ," says Ball. "What fills the big hole left by CaseLogistix -- a flagship product -- if Anacomp plans to stay in the industry?"

Will Thomson Reuters Legal look in the neighborhood for its next EDD acquisition? Time will tell.

Monica Bay is editor-and-chief of Law Technology News, and is a member of the California Bar.

Tuesday, July 06, 2010

Veritext Acquired by Investcorp

NEW YORK, July 6 /PRNewswire/ -- Investcorp, a global provider and manager of alternative investment products, announced today that it has acquired Veritext Holding Company, a leading national provider of deposition and litigation support services to law firms, Fortune 500 corporations, and regulatory agencies in the United States. The terms of the transaction were not disclosed.

Veritext was acquired from an investor group led by The Riverside Company and members of the management team that bought the company in August 2005.

Veritext has its headquarters in New Jersey and operates within the stable and growing legal services industry through its 30 locations across six core geographic regions in the largest legal markets in the United States. The company provides technology and services that capture testimony during a deposition which is a critical part of the discovery phase of most civil litigation cases in the United States.

"Over the past several years, Veritext's management team, led by CEO Michael Sandler and COO Nancy Josephs, has built a market leading company by leveraging its proprietary technology to offer a variety of highly differentiated deposition services," said Chris McCollum, a Managing Director in Investcorp's private equity business. "We believe that Veritext has multiple ways to grow. It has a leading position in the growing deposition services market, the capability to generate strong free cash flow and the opportunity to complete further add-on acquisitions.

Saturday, July 03, 2010

Unify and Daegis Merge to Become Industry’s Most Comprehensive eDiscovery Company

ROSEVILLE, Calif. and SAN FRANCISCO, Calif., – June 29, 2010 – Unify Corp. (NASDAQ: UNFY), a global information management company, and Daegis, a leading eDiscovery solutions provider, today announced that they have merged. Together, the companies will deliver industry-first solutions that integrate information archiving with electronic discovery management to bring organizations flexibility, scalability and predictability across the entire litigation lifecycle.

Under the terms of the agreement, Unify will pay approximately $38 million in a combination of cash, seller financing and stock, detailed more fully below. For the twelve months ended April 30, 2010, Daegis generated approximately $23 million in revenue and $6.5 million in adjusted EBITDA.

By merging, Unify and Daegis will bring new solutions to market that uniquely address the convergence of archiving, information governance and eDiscovery. The combination of Unify’s archive repository and Daegis’ eDiscovery services and technology will facilitate a new level of data management and cost savings for corporate legal departments and law firms. Clients can strategically manage their data within the firewall and, by leveraging Daegis’ eDiscovery Analytics Consulting (eDAC), benefit from intelligent selection of responsive data early in the process. The integration of technologies will enable the preservation and repurposing of valuable attorney work product across multiple matters. These solutions will reduce costs, increase defensibility and furnish a blueprint for repeatable success across the Electronic Discovery Reference Model (EDRM).

Wednesday, June 16, 2010

Precise, Inc. Acquires eDiscovery Software Provider LitSoft LLC

Pittsburgh, PA (PRWEB) June 15, 2010 -- Precise, Inc. (, a trusted provider of electronic discovery solutions and trial support services, today announced the completion of an agreement whereby it has acquired LitSoft LLC, a provider of eDiscovery software as a service (SaaS) founded in 2006 in Annandale, VA. The purchase of LitSoft is a strategic addition to Precise’s rapidly expanding suite of eDiscovery solutions. Specifically, Precise will make use of LitSoft’s flagship product, LitScope, an online document review application featuring an intuitive user interface built to enable fast, reliable, and efficient review with minimal training requirements.

The acquisition will extend Precise’s portfolio of discovery and document review offerings for its corporate and law firm clients. Precise will leverage LitScope’s review platform by emphasizing and building upon the application’s streamlined architecture, specifically designed to simplify the document review process and reduce the costs associated with the review and production of electronically stored information (ESI). The addition of LitSoft’s technology to Precise’s existing array of services reinforces the firm’s commitment to providing a complete suite of litigation support technologies including a full range of trial support services and eDiscovery solutions, from forensic data collection to full-scale document review.

Precise’s CEO, Peter L. Mansmann, Esq., states, “The acquisition of LitSoft supports our company’s mission of continued expansion in the eDiscovery market in direct response to ongoing demand for our services. Incorporating LitScope’s proven review technology into our current breadth of eDiscovery expertise further reinforces our position as a trusted provider of comprehensive discovery and trial support services to the legal community.”

Steve Jreige, former managing partner of LitSoft added, “The LitSoft team and I are extremely excited to join Precise, particularly given its outstanding reputation in the industry. We look forward to continuing to develop and bring to market leading edge eDiscovery technology, and I believe this acquisition greatly enhances our ability to do so.”

Thursday, June 10, 2010

AccessData Corporation and CT Summation Announce Merger

LINDON, Utah and NEW YORK, June 9 /PRNewswire/ -- AccessData Corporation and CT Summation today announce they've signed an agreement to join forces and merge into a single company, AccessData Group, LLC. The new company will deliver an end-to-end eDiscovery software solution capable of addressing all phases of the litigation workflow.

As the leader in in-house eDiscovery collection, processing and analysis, AccessData brings to the merger an unsurpassed technology portfolio, designed to enable the world's largest companies to take control of eDiscovery and dramatically reduce costs. Its AccessData eDiscovery software is currently the most comprehensive eDiscovery solution on the market, enabling organizations to address litigation hold, automated collection, processing, and analysis prior to attorney review.

CT Summation, the premier provider of litigation workflow and eDiscovery solutions to law firms and corporate legal departments, brings to the deal a comprehensive suite of software products that are the gold standard throughout the legal community. CT Summation's iBlaze, Enterprise, WebBlaze, CaseVault, CaseVantage and Discovery Cracker products have received more than 45 legal industry technology and "Reader's Choice" awards since 1997. CT Summation is part of Wolters Kluwer Corporate Legal Services, which operates under the CT brand. Wolters Kluwer will remain as a strategic investor in the new AccessData Group, LLC, with a minority stake in the company.

By combining these complementary workflow solutions, AccessData will be able to deliver the first, true end-to-end eDiscovery software solution for corporations and law firms that supports the litigation process from litigation hold through trial.

Monday, June 07, 2010

Altegrity to Acquire Kroll, the World's Leading Risk Consulting Firm, from Marsh & McLennan

NEW YORK and FALLS CHURCH, Va., Jun 07, 2010 (BUSINESS WIRE) --Marsh & McLennan Companies, Inc. (NYSE: MMC), the global professional services firm, and Altegrity, Inc, an international screening and security solutions company, today announced a definitive agreement under which Altegrity will acquire Kroll Inc. from MMC in an all-cash transaction valued at $1.13 billion. Altegrity is owned by Providence Equity Partners, the leading global private equity firm specializing in equity investments in media, entertainment, communications and information companies.

The transaction, which is expected to close by late September, is subject to regulatory approvals and other customary closing conditions.

Altegrity CEO Mike Cherkasky, who also served as President and CEO of Kroll from 2001 to 2004, said: "Our clients look to Altegrity for information and insight to make smarter decisions. The combination of Kroll and Altegrity broadens our capabilities with the addition of a portfolio of industry-leading services to help clients identify and manage risk. Altegrity and Kroll will leverage their combined resources to develop new and innovative solutions for government and commercial clients across a global platform. Both Altegrity and Providence look forward to working with Kroll CEO Ben Allen and the entire Kroll team to deliver the highest quality service offering in the industry and to grow the combined business."

"This transaction represents exciting new opportunities for Kroll," said Ben Allen, CEO of Kroll. "Over the past several years, we have taken significant steps to improve profitability and enhance collaboration across our business units. Kroll is now poised to continue its historical track record of growth, which will be accelerated by the combination with Providence and Altegrity."

Monday, May 17, 2010

Navigant Consulting Acquires Daylight Forensic & Advisory

CHICAGO, May 17, 2010 - Navigant Consulting, Inc. (NYSE: NCI) announced today that it has acquired Daylight Forensic & Advisory LLC, an international regulatory consulting and investigative firm specializing in financial investigations, AML consulting, regulatory compliance, forensic technology services, and fraud risk management. Combining Daylight Forensic & Advisory’s industry expertise with Navigant’s Disputes and Investigations practice creates a significantly enhanced global investigative service offering, and reinforces Navigant’s strong New York presence.

“This combination is clearly a case of the whole being greater than the sum of its parts,” said William M. Goodyear, Chairman and Chief Executive Officer of Navigant. “Daylight’s market leading expertise in corporate investigations and compliance around AML, FCPA and fraud risk management, combined with Navigant’s deep forensic accounting capabilities, creates a comprehensive offering in the global investigations and compliance space. This combination comes at a critical time for our clients who are facing increasing regulatory pressure and risks associated with global business transactions.”

Daylight Forensic & Advisory is headquartered in New York City and the majority of their 65 consulting professionals are based there. Daylight Forensic & Advisory was founded in 2006 by Ellen Zimiles, Chief Executive Officer, and Joseph Spinelli, Chief Operating Officer. Zimiles has more than 25 years of litigation and investigation experience, including 10 years as a federal prosecutor in the Southern District of New York. She is a leading authority on AML programs, corporate governance, regulatory compliance, fraud control and public corruption matters.

Wednesday, May 05, 2010

Advanced Discovery Services and American Data Services Merge

MOUNTAIN VIEW, Calif. - Advanced Discovery Services and American Data Services announced today that the companies have entered into a definitive agreement to merge. The combined company is well positioned to address the specific needs of today's law firms and corporate legal departments with regards to regulatory, investigatory and legal matters. Both companies provide services in electronic discovery, computer forensics, early case assessment, web hosting, document review and paper discovery.

The combined company will operate under the name of Advanced Discovery. David Vandygriff, chief executive officer of American Data Services, will be chief executive officer of the combined company. Thadd Hale, chief executive officer of Advanced Discovery Services, will be chief operating officer of the combined company, Advanced Discovery. The combined company will support nine strategic locations serving clients worldwide.

"This merger represents a huge win for our existing and future clients," said David Vandygriff, CEO of American Data Services. "Law firms and corporations need a true partner to help them efficiently and cost-effectively resolve their litigation support needs. We will build on our complementary strengths, resources, vision as well as proven track records to best partner with our clients."

Tuesday, April 27, 2010

DOAR Litigation Consulting Acquires Inference Data

NEW YORK, April 26 /PRNewswire/ -- DOAR Litigation Consulting ("DOAR") and Inference Data today announced that the companies have reached a definitive agreement under which DOAR will acquire Inference Data, a leader in analytics and electronic discovery software.

Inference Data, based in New York, NY, is a strategic addition to DOAR's already extensive discovery management practice. Inference Data provides next-generation software for analytics-driven assessment, meet-and-confer preparation, and accelerated legal review. The company's key product, Inference, applies conceptual search and analysis to prioritize document collections and to identify key documents for faster and more cost-effective document review. It has been used by DOAR and other clients in some of the largest, most complex civil and criminal litigation matters.

The acquisition will extend DOAR's portfolio of analytics and electronic discovery offerings for its corporate and law firm clients. DOAR will continue to build upon Inference Data's electronic discovery platform by enhancing its analytics-driven assessment and review technology, which is specifically designed to streamline document review and reduce the costs associated with the management, review and production of electronic discovery. The addition of Inference to DOAR's discovery management and expert witness practice reinforces DOAR's emphasis on reducing the time and cost associated with the manual review of documents through the use of legally acceptable, defensible methodologies and advanced technologies.

Paul Neale, DOAR's President & CEO, states, "The acquisition of Inference allows us to expand its market presence as an analytical review platform while incorporating its proprietary technology into DOAR's automated document review methodology. Automated document review, technology-driven review and production of electronically stored information, is clearly the future of the electronic discovery market and we intend to remain a leader in this arena."

Saturday, April 24, 2010

The 451 Group Releases E-Discovery and E-Disclosure Report

According to the "3rd Annual eDiscovery Survey of Illinois Lawyers," an end user survey of 185 legal professionals conducted to understand their level of exposure and experience with electronic discovery vendors and products included mentions of companies such as Applied Discovery, Kroll Ontrack, FTI Consulting and Huron Consulting.

Four of the key findings noted in the Executive Overview are:
  • Corporate e-discovery in-sourcing continues as customers adopt software and services over reliance on law firms or wholly outsourcing the process.
  • Many companies still lack repeatable business processes for litigation, and rely on existing internal resources for meeting e-discovery requirements on an ad hoc basis – but half of the users in our survey intend to buy e-discovery products/services in 2010.
  • Judicial guidelines and international regulations defining e-discovery protocols are still emerging, lagging actual e-discovery practices.
  • Information governance systems and e-discovery-enabled archives have gained traction for proactive litigation preparedness as enterprises struggle with data growth and fragmented information management.

The Bottom Line noted in the Executive Summary is:

  • Despite a flat, recessionary 2009 for many e-discovery vendors, there is significant opportunity in the market at the right price and functionality, especially for tools with a broader information governance use case – most businesses still lag in adoption and have not committed to a vendor or product strategy.

The report can be found on The 451 Group website.

Friday, April 02, 2010

DMC and Global EDD Group Form Joint Venture - Asia Legal Technologies

Cleveland, Ohio, USA - (31 March 2010) – Global Electronic Discovery & Disclosure Group (“Global EDD Group”), a boutique consulting firm that provides innovative legal technology solutions across the globe, today announced the formation of Asia Legal Technologies™ (“ALT”), a strategic alliance and joint venture with Data Management Corporation (“DMC”), a document and data processing solutions company based in Singapore. ALT combines the experience, knowledge and resources of DMC and Global EDD Group to provide innovative arbitration, due diligence and litigation support services throughout the Asia-Pacific Region.

Asia Legal Technologies is uniquely able to meet the needs of the most challenging projects by leveraging a vast network of technology and operational resources along with facilities in Hong Kong, China (Beijing, Shanghai and Suzhou), Kuala Lumpur, Seoul, Singapore, Taipei, Tokyo and Dubai. From these facilities and on-site locations throughout the region, ALT provides a wide range of services including:

• Data Collection & Preservation,
• Imaging & Coding,
• Early Case Assessment (ECA),
• Data Filtering, Analytics & Processing,
• Asian Language Support & Translation, and
• Document Hosting & Review.

Thursday, March 11, 2010

Marsh & McLennan Seeking To Sell Kroll For $1.3 Billion

3/8/2010 -- Insurance brokerage Marsh & McLennan Companies Inc. (MMC: News ) has put Kroll, its corporate investigations division, up for sale for about $1.3 billion, according to a report in the Financial Times on Monday.

According to the FT report, the sale has attracted private equity firms including the Carlyle Group, Apax Partners and General Atlantic. These firms entered bids by the deadline for first expressions of interest in late February, while BCPartners might be a potential buyer alongside one or two trade bidders, the report noted, citing people familiar with the situation.

Other expressions of interest for Kroll include from its founder, Jules Kroll, who sold the business to Marsh in 2004 for $1.9 billion. The founder of Kroll recently launched a new boutique investigations firm called K2. He no longer owns a significant stake in Marsh.

Monday, March 01, 2010

RR Donnelley to Acquire Bowne for $481 Million in Cash

CHICAGO & NEW YORK, Feb 23, 2010 -- R.R. Donnelley & Sons Company (NASDAQ:RRD) and Bowne & Co., Inc. (NYSE:BNE) jointly announced today that they have signed a definitive agreement pursuant to which RR Donnelley will acquire Bowne & Co., Inc., a provider of shareholder and marketing communications services. The all cash deal is valued at approximately $481 million, or $11.50 per share. The agreement has been approved by the Boards of Directors of both companies. The acquisition is expected to be accretive to RR Donnelley's earnings in the first full year after the closing of the transaction, which is expected to occur in the second half of the year. The completion of the transaction is subject to customary closing conditions, including regulatory approval and approval of Bowne shareholders.

The combination with Bowne, which has operations in North America, Latin America, Europe and Asia, will expand and enhance the range of services RR Donnelley offers to its customers, while also creating an opportunity for RR Donnelley to provide its comprehensive line of products to Bowne's clients.

Bowne, headquartered in New York, had revenues of approximately $675 million during 2009 and offers digital one-to-one printing services for healthcare, transactional communications, financial services, marketing communications and other applications.

Tuesday, February 23, 2010

Iron Mountain Acquires Mimosa Systems

BOSTON, Feb 22, 2010 -- Iron Mountain Incorporated, an information management services company, today announced it has acquired Santa Clara, Calif.-based Mimosa Systems, Inc., a leader in enterprise-class content archiving solutions, for approximately $112 million in cash, subject to closing adjustments. The deal provides Iron Mountain with an integrated archive for email, SharePoint data and files, and gives the company an on-premises archiving option to complement its existing cloud-based archives.

The ability to archive and manage data both onsite, inside the customer's firewall, and remotely in the cloud makes Iron Mountain a one-stop shop for data capture, archiving and management. It also provides the company's customers with greater flexibility and choice for managing their information.

Additionally, the company can now capture and manage a broader range of enterprise information from so-called "edge-of-the-network" devices like desktop PCs and laptops as well as from company repositories like email stores, SharePoint servers and file systems. Many larger businesses still prefer to keep this data on their premises today. Finally, the acquisition allows Iron Mountain to extract intelligence from the information it manages both on-premises and in the cloud, advancing the company's larger strategy to help enterprises lower the costs and risks associated with storing and managing information.

Saturday, February 20, 2010

Litigation Support Software Comparison Chart

The American Bar Association recently published a report on litigation support software and online document review tools.

Some of the software products compared are:
  • Case Logistix
  • Concordance and FYI
  • CT Summation iBlaze
  • ImageDepot
  • NextPoint
Below is a description of the report as found on the ABA website, which can be downloaded as a PDF by clicking the link below.

Litigation support software is designed to aid lawyers in the process of litigation, and generally includes databases for organizing, searching, and reviewing discovery material including deposition transcripts, produced documents, and correspondence. The comparison chart below includes information on features of several brands of litigation support software. As vendors may offer other packages, please check each vendor's website for additional details and contact information. The information in this chart originates from the vendors, is not a comprehensive review of litigation support software, and does not constitute endorsements of any kind.

Thursday, February 18, 2010

Investment Fund Seeking Acquisition Opportunity in Legal Outsourcing Industry

A private investment fund formed by a team of experienced operators, entrepreneurs, and investors is looking for acquisition opportunities in the legal outsourcing industry.

The seasoned team of investors are looking for the following characteristics in acquisition candidates:
  • A strong track record of growth

  • Revenues of $5m or greater with 15% or better EBITDA margins

  • Senior management looking to exit or bring on a new partner
If you are interested in learning more, please contact me at and I will be happy to make an introduction. Serious inquiries only please.

Wednesday, February 17, 2010

Actis Invests US $50 Million in Integreon

16 February 2010 -- Actis announced today that it has invested US $50 million to acquire a substantial minority stake in Integreon, the leading global provider of legal support, research and business services to law firms, financial institutions and corporations.

As part of this investment, JM Trivedi, Actis’s Head of South Asia, and Gautham Radhakrishnan, a Director at Actis, will join Integreon’s board of directors.

Actis has invested alongside Ayala Corporation, the oldest and one of the leading conglomerates in the Philippines, which initially invested in Integreon in 2006 through LiveIt Investments, its business process outsourcing holding company. Ayala Corporation will continue to hold a majority stake in Integreon.

Today, professionals at leading organisations including 11 of the top 50 global brands such as Microsoft; 32 of the AmLaw 50 such as Clifford Chance and DLA Piper US LLP; and 9 of the top 10 global investment banks focus on their ‘highest and best use’ by trusting high-quality research, document, and legal solutions from Integreon. Integreon revenues have grown at an 83% CAGR since 2006 to an $89 million revenue run rate in Q4 2009.

With Actis’s investment, Integreon plans to grow its range of services and technologies, launch new delivery centres, and seek strategic acquisitions.

Thursday, February 11, 2010

Flex Discovery Solutions Acquires ImageWorks Digital Document Solutions

Houston, TX -- 2/10/10 -- Today Flex Discovery Solutions announces the acquisition of Houston, Texas based ImageWorks Digital Document Solutions (ImageWorks). ImageWorks is a litigation support services provider to leading law firms and corporate counsel, both locally and nationally. The company announced that the acquisition is complete as of today and that ImageWorks will operate as Flex Discovery Solutions.

Flex Discovery Solutions will retain 100% of the current ImageWorks staff, including Stephen T. Silkwood, ImageWorks’ CEO and Co-founder, who will become a Vice President and executive team member. Mr. Silkwood has very deep and successful roots in the document management industry, having started with NightRider in Houston helping to grow that organization into the largest legal copy service in the United States. Following the successful sale of NightRider to IKON Office Solutions, Steve went on to serve many executive roles at IKON before launching ImageWorks, including Chief Operating Office of the Legal Document Services division which grew from $12M to $750M during his tenure.

Monday, February 08, 2010

Intermediate Capital Group acquires significant stake in CPA Global

Intermediate Capital Group (“ICG”), a leading independent investor and fund manager, announces that it has acquired a significant minority stake in legal services firm CPA Global, investing alongside the company’s senior management team and the founding shareholders.

The acquisition has received the required approvals from CPA Global shareholders as well as the Jersey courts, which sanctioned a new Scheme of Arrangement that came into effect today. The terms of the transaction are not disclosed.

Founded in Jersey in 1969, originally to manage patent renewals, CPA Global has expanded over the years to become a multinational company that is the clear market leader in the global intellectual property (IP) services market and one of the world's leading providers of broader legal services outsourcing, including litigation support, document review and contract management. The legal services outsourcing sector is expected to grow rapidly over the next few years, with estimates of the potential market value in the tens of billions of dollars.

Saturday, February 06, 2010

Iron Mountain Merger and Acquisition Activity

Came across this article that asks the question "Will Iron Mountain Acquire Mimosa?".

Here is an excerpt:
For what was once a fairly staid Old Economy business, Iron Mountain (IRM) has done a better job than most companies in acclimating itself to the digital age. The records management vendor has accomplished that with eight acquisitions over the past half-decade, picking up technology for online backup and e-discovery, among other offerings. The $158m purchase of e-discovery provider Stratify stands, in many ways, as Iron Mountain’s marquee acquisition for its digital business. It has maintained the Stratify name and, last November, turned its whole digital subsidiary over to Ramana Venkata, the founder and former CEO of Stratify.

After that purchase in October 2007, Iron Mountain stayed out of the market for more than two years, despite many adjacent sectors that it could buy its way into. (And, from what we remember of the past two recession-wracked years, prices for startups weren’t particularly steep.) The M&A drought ended last month with the pickup of a San Francisco-based services company, Legal Imaging Technologies, that provides electronic document conversion. Terms weren’t disclosed.

Friday, January 29, 2010

Iron Mountain's Stratify Acquires E-Discovery Company

Boston-based Iron Mountain Inc. reports that its California-based electronic discovery subsidiary Stratify has acquired Legal Imaging Technologies Inc., a San Francisco area company specializing in electronic document conversion and imaging processing.

Adding LIT’s processes and products into Stratify’s e-discovery capabilities will triple Stratify’s production capabilities in its data center operations that support the North America, EMEA and Asia-Pacific markets, according to Iron Mountain (NYSE: IRM) officials.

No financial details of the acquisition were disclosed.

Founded in 1993, Legal Imaging Technologies started as a high-volume, paper-based litigation support services company for firms located in the San Francisco Bay area. The company developed its own high-performance software tools that focused on efficient conversion, stamping, optical character recognition (OCR) and other electronic discovery processes as the e-discovery market grew, officials said.

Iron Mountain paid $158 million to acquire Stratify Inc., based in Mountain View, Calif., in October of 2007.

Monday, January 18, 2010

Lighthouse Document Technologies Raises $200,000

As noted in John Cook's Venture Blog.

Lighthouse Document Technologies -- a Seattle company led by David Rostov -- raised $200,000 in equity and debt financing, according to a filing. Rostov is the former chief financial officer at InfoSpace, Apex Learning, and Nextel International. The company provides electronic discovery services to law firms.

Friday, January 15, 2010

U.S. Legal Support Completes Acquisition of Array Technology Group

HOUSTON - U.S. Legal Support, Inc., a leading provider of full-service court reporting, record retrieval and legal placement & staffing services has announced the completion of its acquisition of Array Technology Group LLC, a premier electronic discovery, trial consulting and training services company.

“This acquisition is a significant step in U.S. Legal Support’s strategy to accelerate growth, enhance our coverage in targeted markets, and more importantly, enables us to offer a convenient, one-stop shop for our clients. With the acquisition of Array Technology now complete, we’ve added a fourth solution line to expand our portfolio of litigation services,” said Charles F. Schugart, president and CEO, U.S. Legal Support, Inc.

With 25 years of experience, and a complete line of litigation support services from discovery to verdict, Array will be blended into U.S. Legal Support’s litigation services. James Bruni, EVP of sales & marketing stated: “We will develop integrated plans that build on the U.S. Legal Support brand and provide clients with a more comprehensive line of products and service.”

Array’s president, Peter Sattin, will assume the role of divisional president of U.S. Legal Support’s fourth solution line and will be based in New York. Sattin said, “I have always believed that there are tremendous opportunities in the legal market for a firm encompassing best-of-breed products and services. The synergies gained by the combination of Array’s litigation and trial services with U.S. Legal Support’s core businesses and nationwide presence directly benefit our clients with a fully realized litigation resource, a complete relationship.”

Saturday, January 09, 2010

Gartner MarketScope for E-Discovery Software Product Vendors

Excerpts from the December 2009 research report found on Gartner's site.

E-discovery is a maturing market with entrants from multiple categories, including storage and archiving, search and information access, content and records management, and workflow, as well as tools designed as end-user applications for legal professionals and forensic data collection tools aimed at security professionals, regulators and law enforcement agencies. All of these categories of software vendors have added e-discovery to existing suites or purport to cover various aspects of the e-discovery process. There are also pure-play e-discovery vendors to consider.

Enterprises purchasing e-discovery software can reduce the costs of litigation by improving their control over unstructured content, and semistructured content, most notably e-mail. Our client references consistently report that they have cut costs and risks by taking control of litigation hold, litigation-hold-tracking, file collection, file processing and legal review, instead of outsourcing these functions.

Market Growth and Trajectory
The e-discovery product market received a boost from the recession of 2008 to 2009. Because all costs began to be scrutinized, including previously immune legal budgets, corporate legal departments had to start looking for a way to cut their costs. In addition to the recession, awareness of the 2006 changes to the Federal Rules of Civil Procedure (FRCP) in the United States (see Note 3) and parallel efforts on the part of the European Union, South Africa, Australia and Canada continued to grow among the legal profession, providing further growth stimulus. As a final impetus to growth, the Obama administration stimulated demand among government agencies, particularly regulators, by giving them a mandate to make government more transparent. In addition, in 2009, for the first time, our client inquiry showed accelerating interest and awareness of discovery and disclosure in Europe, particularly regarding privacy versus disclosure.

User Wants and Needs: E-Discovery Moves In-House
In 2009, enterprises became clearer about their actual needs and what part of the e-discovery process they wished to manage themselves. Enterprise demand began to coalesce around a set of features and functions. The consolidation in the market has been around a set of features and functions most desirable to in-house applications. As in previous years, we will use the Electronic Discovery Reference Model (EDRM) to describe both the process of e-discovery and how the vendors fit their products into the model. Despite some credible argument that the model is "not detailed enough," it still makes a good starting point for vendor categorization. The EDRM is shown in Figure 1, so that clients can reference it for the purposes of vendor analysis. The main deficiency in the model has proved to be that it lacks a definition of "early case assessment," which many vendors discuss, and which is high on the list of functionality that corporate buyers want.

Market/Market Segment Description
The criteria for vendor inclusion in this year's MarketScope have changed because the market has changed. The emerging nature of the market justified inclusion of smaller vendors in 2008, but this year's revenue cutoff of $15 million reflects the growing maturity of the players, as well as their consolidation and growing revenue bases. With the amount of interest and activity in this market, smaller players with interesting technology are likely acquisition targets. Without major differentiating technology, the barrier to successful entry into the e-discovery market became higher this year, and vendors without the budget to create awareness or to develop the necessary channels to market will not be able to rise above the "noise" around e-discovery.

Changes in the Vendor Landscape
There have been a few significant acquisitions in 2009. Autonomy acquired Interwoven, and EMC acquired Kazeon. Clients can expect more changes in the market, including mergers, acquisitions, exits, entries and repositioning. The predicted level of activity in the market is based on the facts that it is fast-growing, and contains large, established players and smaller, technology-rich startups. In addition, the evidence continues to accumulate that corporations can save costs and reduce risks by adopting e-discovery technology in-house, and so the growth of the market will continue. In these fertile conditions, a high degree of movement and change is inevitable.

By the end of 2011, as the market moves from emerging to early-stage consolidation, and the early adopters continue to report their results, there will be 25% fewer vendors in the e-discovery market as a result of mergers and acquisitions and vendors exiting the market.

Inclusion and Exclusion Criteria
To be included in this MarketScope, a vendor must meet the following criteria:

- Have a software product that can be licensed for implementation and use inside a company's firewall or by a third-party service provider.
- Cover at least three of the functional areas of the EDRM.
- Have e-discovery-related product and maintenance revenue of at least $15 million.

Added Vendors
We added EMC, CT Summation (Wolters Kluwer) and Concordance (LexisNexis) to this year's MarketScope. EMC's acquisition of Kazeon means that the two are now evaluated together.

Dropped Vendors
We dropped Nuix from this year's MarketScope as it did not meet the revenue criterion. We dropped i365 as the company has effectively exited the market.

Monday, January 04, 2010

Iris Data Services Acquires Lexsum, Inc.

KANSAS CITY, January 4, 2010 — Iris Data Services, a leading provider of eDiscovery solutions, announced today that it has acquired Lexsum, Inc., a regional provider of litigation support including document services such as copying, scanning, imaging and coding. Lexsum’s downtown Kansas City location at 106 W. 11th Street, Suite 100, Kansas City, MO 64105 will be Iris’ second metropolitan location; their national data center is in Olathe, Kansas. Iris Data Services is a leading supplier of electronic discovery solutions including tape restoration, computer forensics, eDiscovery, and online review utilizing their proprietary review platform, Unify™.

“The addition of Lexsum’s service offering and experienced staff solidifies our leadership in the Kansas City market,” said the president of Iris, Major Baisden. “Lexsum’s document services compliment our eDiscovery product offering, and allows us to offer end-to-end litigation support to area law firms and corporate legal departments.”

“We are excited about joining the Iris family,” said TJ Collins, former president of Lexsum and Iris’ new worldwide Director of Operations. “This will allow us to offer leading eDiscovery services to our clients, giving them one company to turn to for all their document management needs.” In his role as Director of Operations, Collins will oversee Iris’ worldwide production including offices in the U.S., China and Australia.