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

Overview
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.

Objective
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
Financial:
- Revenues between $8-50M
- EBITDA $1.5-6M
- EBITDA Margin of 15% or greater
- Transaction value of $10-50M

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

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

Situational:
- 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 jenkins.bradley@gmail.com 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.