Monday, December 05, 2011

Document Technologies Inc Recapitalized by Harvest Partners

New York-based buyout shop Harvest Partners has recapped of Document Technologies, providing a “successful liquidity event” for Quad-C Partners VII, L.P., the firm announced Friday. No terms of the deal were disclosed. Atlanta-based Doument Technologies is a provider of outsourced litigation support services, including facilities management services and electronic and paper discovery.

PRESS RELEASE
Harvest Partners, LP (“Harvest”), a New York-based private equity firm, and the management team of Document Technologies, Inc. (“DTI” or the “Company”) announced today that they have completed a recapitalization of the Company resulting in a successful liquidity event for Quad-C Partners VII, L.P. Terms of the transaction were not disclosed.

Founded in 1998 and based in Atlanta, Georgia, DTI is one of the largest independent providers of outsourced litigation support services, including facilities management services and electronic and paper discovery solutions. DTI services top law firms, Fortune 500 companies and hundreds of small and mid-size corporations and law firms nationwide. DTI operates 27 facilities and has a presence in more than 70 markets across the U.S.

DTI’s management team, including Founder, President and CEO, John Davenport, Jr., will continue to lead the Company.

“DTI is in a great position to continue its strong growth both organically and through tuck-in acquisitions,” said Ira D. Kleinman, Senior Managing Director at Harvest Partners. “We are looking forward to partnering with John and his team to provide additional financial and strategic resources to continue to build on DTI’s success.”

“DTI has invested heavily in its service delivery platform over the past several years, building a leading, national provider of facilities management and discovery solutions,” said John Davenport, Jr., DTI’s Founder, President and CEO. “The Company is winning new business from existing and new customers due to our first-class capabilities and customer service, and the management team is excited to partner with Harvest.”

“DTI provides differentiated facilities management and discovery services due to the company’s highest quality employee base. We are hiring and expanding our team of experienced project managers, discovery consultants, attorneys and certified forensic examiners,” said Andrew M. Schoenthal, Managing Director at Harvest.

Senior debt was arranged by GE Capital and Golub Capital and mezzanine debt by Carlyle Mezzanine Partners. Paul, Weiss, Rifkind, Wharton & Garrison LLP and Alvarez & Marsal advised Harvest. Robert W. Baird & Co., VRA Partners LLC, Bryan Cave LLP and White & Case LLP advised the Company and Quad-C Partners VII, L.P. Ira D. Kleinman and Andrew M. Schoenthal of Harvest will be joining DTI’s Board of Directors.

Friday, October 07, 2011

WestView Capital Partners Leads Recapitalization of LDiscovery

Mclean, VA -- LDiscovery, LLC (“LDiscovery” or “the Company”) announced that its current management team, led by CEO Chris Weiler, has partnered with WestView Capital Partners to recapitalize the Company. Headquartered in Mclean, Virginia, LDiscovery is a leader in ‘end to end’ e-Discovery Management Solutions - from data collection and forensic investigations, Early Case Assessment, ESI processing, web based document review and hosting through trial support. As a Relativity Premium Partner, the Company has implemented an industry leading hosting and review infrastructure, while also integrating advanced searching methodologies to provide more relevant and comprehensive datasets to legal professionals in a timely and cost effective manner. LDiscovery’s services meet the highest of standards for support - true “24/7/365″. The Company provides a full range of e-Discovery services to law firms, corporations and virtually all of the major prime contractors in the government market.

“WestView’s experience with growth-oriented, tech-enabled business services companies and software companies will allow LDiscovery to meet the increasing demand for our first-class solutions, while continuing to provide the level of service our clients have come to expect,” said Chris Weiler, CEO and Co-Founder of LDiscovery. “Furthermore, WestView’s strong capital base and transaction expertise will help LDiscovery stay ahead in the evolving world of e-discovery by giving us the flexibility to make significant investments in our technology and infrastructure as well as execute strategic acquisitions.”

“LDiscovery is a leader in providing integrated “end to end” e-discovery solutions from capturing and processing data to hosting it in a secure and robust platform that sets the new bar,” said Rick Williams, Managing Partner of WestView Capital. “The company’s experienced management team led by Chris has a track record of strong financial performance and technological expertise, making LDiscovery an excellent fit for WestView Capital.”

Sunday, September 25, 2011

iControl ESI Acquires Firefly Dataworks

Dallas, TX -- September 25, 2011

iControl ESI, a national provider of e-Discovery services, reported on September 8, 2011 it has acquired Silicon Valley-based Firefly Dataworks LLC, a leading provider of electronic discovery services to law firms and corporate legal departments throughout the region. The acquisition allows iControl ESI to further increase its visibility and expand its proprietary hosted review software, Recenseo™ to Firefly Datawork's large customer base.

Firefly Dataworks President and Co-founder Christopher A. Lorenz has been named Vice-President, Sales. Mr. Lorenz will assume responsibility for leading the iControl ESI's national sales function, and increasing the company's brand recognition and reputation as a first-rate, knowledge-driven service provider.

"This acquisition makes sense on several fronts," said Michael J. Conner, President of iControl ESI. "First and foremost, we are acquiring a growing company with terrific customer-centered sales leadership, so culturally it is a great fit. Secondly, we now have access to a larger customer base that has been looking for a superior review platform, and feel strongly that Recenseo™ will fill that need. This is very important in today's rapidly-evolving litigation support marketplace."

Thursday, September 08, 2011

Alexander Gallo Holdings Files for Bankruptcy in New York

As reported on the Bloomberg.com website...

Alexander Gallo Holdings LLC, a provider of court reporting and litigation services, filed for bankruptcy protection.

The company today listed debt in the range of $100 million to $500 million and assets of less than $100 million in Chapter 11 documents in U.S. Bankruptcy Court in Manhattan.

The company and its units’ 30 largest creditors without collateral backing their claims are owed about $189 million, according to court documents. Gallo Holdings LLC, listed as the note holder representative, is the biggest, with a claim of $147.9 million, according to court papers.

Peachtree Holdings Inc. holds 100 percent of the equity interest in the Atlanta-based company. Ten affiliates, including Esquire Solutions and Esquire Litigation Solutions, also sought protection.

The case is In re Alexander Gallo Holdings LLC, 11-14220, U.S. Bankruptcy Court, Southern District of New York (Manhattan).

It was reported on Reuters.com that the firm would be sold through bankruptcy to HIG Capital.

A couple days earlier the company announced an agreement to sell the assets from its Esquire Litigation Solutions (ELS) Business Unit to Document Technologies, Inc. (DTI).

Tuesday, September 06, 2011

DTI Acquires Esquire Litigation Solutions' Assets

ATLANTA, Sept. 6, 2011 /PRNewswire/ -- Esquire Solutions, an Alexander Gallo Holdings company, today announced an agreement to sell the assets from its Esquire Litigation Solutions (ELS) Business Unit to Document Technologies, Inc. (DTI) as part of its ongoing effort to focus resources on its core business of providing court reporting, deposition support, and trial services and software.

In addition, Esquire Solutions has entered into a national agreement with DTI whereby ELS services will be sold and delivered through the DTI brand. ELS provides clients with Electronically Stored Information (ESI) management, electronic discovery, forensics, hosted review, project management and document management services. The agreement will allow clients direct access to the best-of-breed offerings from both Esquire and DTI.

"We are very pleased to announce a transaction that allows us to realize the tremendous value we've built in ELS and use the proceeds to support our core businesses for the benefit of our clients. We're also pleased that the talented and committed employees of ELS will be joining an established company with an excellent reputation," said Alexander Gallo, founder and Chief Executive Officer of the Company.

Esquire Solutions is the nationwide leader in litigation support solutions anchored in the major litigation centers of Los Angeles, New York, Chicago and Atlanta, delivering end-to-end litigation solutions in court reporting, legal video, hosted review, electronic discovery, trial software and trial consultation. The Company's professionals support AmLaw 100 law firms and global corporations and their outside counsel with the convenience and efficiency of a single source for comprehensive litigation solutions. For more information, visit www.esquiresolutions.com.

Friday, September 02, 2011

Advanced Discovery and CP Document Technologies Announce Merger

Los Angeles, California (September 1, 2011) - Advanced Discovery, LLC and CP Document Technologies, LLC announced today that each has entered into an agreement to merge.

Operating under the Advanced Discovery™ brand, the combined companies are poised to advance their existing experience in effectively managing the ever-shifting needs of corporate legal departments and law firms. Each company is already an established, premier provider, of professional services in electronic discovery; including forensic data collection, early data assessment, electronic data processing, hosted document review and managed contract review/coding services.

David Vandygriff, the current CEO of Advanced Discovery, will share a cooperative Chief Executive Officer role with Michael Driver, the current CEO of CP Document Technologies. Jeremy Lindahl, the current COO of CP Document Technologies, will become an Executive Vice President of Advanced Discovery. Thadd Hale will continue in his role as the COO of Advanced Discovery.

“This merger of two electronic discovery marketplace anchors will leverage seasoned professionals and collective technical strength for the benefit of corporations and law firms nation-wide,” said David Vandygriff, “CP Document Technologies has an excellent team and both organizations are eager to realize the greater breadth of opportunities that will be brought through the expansion and growth that this merger provides.”

“Combining forces with Advanced Discovery stood-out as an opportunity that offers both outstanding benefits in service to our clients and additional resources to our dedicated team members. We are all energized and looking forward to leveraging the strength of our newly combined resources,” stated Michael Driver.

Friday, August 19, 2011

HP Acquires Autonomy for $10B

The Associated Press, August 18, 2011 -- Hewlett-Packard Co. is buying Autonomy Corp. to expand its line-up of business software products as it lowers its profile in consumer electronics.

The acquisition, announced Thursday, comes amid a flurry of other dramatic moves that will reshape HP, the world's largest technology company by revenue. The shake-up will sharpen HP's focus on selling products and services to businesses and government agencies, instead of making gadgets for consumers.

Buying Autonomy will give HP another lure in the business market, where its chief rivals are IBM Corp., Oracle Corp. and Cisco Systems Inc.

Among other things, Autonomy makes search engines that help companies find vital information stored across computer networks.

HP CEO Leo Apotheker is paying a steep price to acquire Autonomy, which is based in Cambridge, England. It translates to $42.11 per share (GBP25.50). That's 64 percent higher than Autonomy's previous closing price. The $10 billion price tag is also 11 times greater than Autonomy's annual revenue of $870 million and represents about one-sixth of HP's current market value.

Autonomy's location outside the U.S. enabled HP to dip into its offshore stash of cash to pay for the deal. That's an appealing option for U.S. companies because they have to pay higher taxes on the money they transfer home. Microsoft Corp. is also using its offshore cash to buy Internet phone and video service Skype for $8.5 billion.

HP ended July with $13 billion in cash. The company didn't break down how much of that money was held offshore.

In a Thursday conference call, Sanford Bernstein analyst Toni Sacconaghi questioned Apotheker about whether he was taking too big of a risk on Autonomy at a time when HP's stock is slumping badly. Even before they plunged in Thursday's extended trading, HP's shares were down by 30 percent since Apotheker became CEO last November. The stock ended the regular trading session at $29.51.

Apotheker defended the acquisition as a smart move and echoed some of the remarks he had made in a prepared statement. "Some acquisitions require heavy lifting, but bringing Autonomy into the HP world will be seamless and highly complementary," Apotheker said in that statement.

With 2,700 employees, Autonomy will continue to be run by its CEO, Mike Lynch, after the deal closes. That's expected to happen by the end of this year.

HP, which is based in Palo Alto, Calif., will be hoping the Autonomy deal works out better than its $1.8 billion acquisition of device maker Palm 13 months ago.

In a surprise move, HP disclosed plans to stop making smartphones and tablet computers running on Palm's software. HP also is looking to jettison its personal computer business in a sale or spinoff.

Tuesday, July 26, 2011

DiscoverReady Acquires ACT Litigation Services

MINNEAPOLIS, Jul 25, 2011 (BUSINESS WIRE) -- The Dolan Company announced today that its DiscoverReady subsidiary had completed a significant strategic expansion in the electronic discovery sector with the acquisition of the assets of ACT Litigation Services, based in Valencia, CA.

The purchase price was $65 million with additional future payments possible depending upon performance. The transaction closed July 25.

ACT is one of the country's oldest and most successful complex litigation automation firms and specializes in providing technology and process solutions to clients with electronic discovery needs. The company delivers the most efficient available processes to complete e-discovery projects faster, better and more economically. It also provides hosting and review services.

DiscoverReady provides first-pass document review, managed services and data processing and hosting to the e-discovery sector. The company was a pioneer in fixed-fee document review and automated review. In 2009 it was acquired by The Dolan Company. Like ACT, DiscoverReady services the legal needs of large corporations and their legal counsel.

"Combining ACT and DiscoverReady solidifies our position in the top echelon of e-discovery providers, not just in talent, client base and capacity, but also in terms of quality and innovative solutions," said James P. Dolan, president and chief executive of The Dolan Company. He said the acquisition combines industry leaders in review and in technology and process development.

Dolan said ACT's trailing 12-month revenues were approximately $30 million. The transaction will be immediately accretive to cash earnings per share. He said the transaction reduces the company's revenue concentration by spreading its business across many more clients. For example, upon closing the transaction, on a pro-forma basis, only one DiscoverReady client accounts for more than 10% of DiscoverReady's revenues.

"We have known the team at ACT for more than decade. During that time, we have admired their strong market reputation and business philosophy," said DiscoverReady chief executive officer Jim Wagner, adding, "We both are 'process first' organizations and ACT's client-centric quality-focused culture complements our own."

Wednesday, July 20, 2011

Navigant Acquires Ignited Discovery

CHICAGO – July 19, 2011 – Navigant (NYSE: NCI) announced today that it has acquired Ignited Discovery, a leading electronic evidence and discovery services provider. The Ignited Discovery team brings technology-focused expertise in collections, processing and hosting services that, combined with Navigant’s existing Technology Services practice, creates a significantly enhanced discovery services offering for clients dealing with anti-trust matters, SEC investigations, class actions and other data intensive high risk situations. The team complements Navigant’s strong New York and Washington DC presence.

“Seismic changes are occurring in the litigation support and eDiscovery marketplace. Corporate and law firm clients are demanding not only end-to-end, cost effective and predictable e-discovery capabilities, but also highly flexible custom applications,” said Jeff Green, Vice President, Navigant Dispute & Investigative Services. “With the Ignited Discovery team, we have strengthened our data collections, processing and hosting capabilities in order to support clients in managing petabytes of increasingly diverse and disperse data. The enhanced practice will strengthen our ability to manage the largest data sets across the Electronic Discovery Reference Model (EDRM) spectrum.”

Ignited Discovery (www.igniteddiscovery.com), founded in 2003 by Russ Kaulback and Guggan Datta, is a provider of e-Discovery services specializing in integrated collections, processing, hosting and productions. The company is known for delivering consistent, cost-effective and timely work product, using proprietary intellectual property to process data more efficiently and to manage projects more effectively.

“Having partnered with Navigant on numerous client engagements, we know that they share our view of the discovery services market,” commented Kaulback. “Technology is the enabler, and we provide clients with the most up-to-date proven solutions, and deliver quality and value through efficiency and rigor in our operations. Navigant will be a great place for us to expand our reach and continue to develop the proprietary solutions our clients have come to expect.”

Tuesday, June 28, 2011

UnitedLex BPO Receives Investment

Investment groups Helion, Canaan and Sequoia acquire shares in UnitedLex and co-founder Ajay Agrawal sells his entire stake in the company.

Helion Venture Fund I and Canaan Advisors Pvt Ltd have raised their holding in an existing portfolio firm UnitedLex, a Gurgaon-based legal process outsourcing firm. Sequoia also joined in buying part of the stake that was sold by co-founder Ajay Agrawal.

Although UnitedLex did not disclose details of the transaction, the three investors have acquired 18.1 per cent stake in UnitedLex BPO Pvt Ltd for a total consideration of $16.68 million (75.3 crore), according to a report in ET.

Two of the three venture capital firms are existing shareholders of UnitedLex. Helion originally invested in January 2007 and followed it up with a further investment in July 2008 when Canaan also joined in.

UnitedLex BPO, a legal process outsourcing company, offers intellectual property, contract management, litigation support and immigration support services. The firm also focuses on offshore solutions including process mapping, performance baselining and process re-engineering services.

Agrawal who served as a securities law expert in various firms during 1994-2006, struck out as an entrepreneur in October 2006 and co-founded UnitedLex in the legal process outsourcing and strategic legal technology space.

He was part of the leadership team that led the UnitedLex through a period of rapid growth and geographical expansion by developing a new range of technology-powered solutions in the domains of contracts management, patent analytics and trademark solutions and has several pending patents as an innovator.

For the year ended March, 2010, UnitedLex BPO had a total income of Rs 29 crore, with net loss of Rs 68 lakh, according to VCCedge, the financial research platform of VCCircle.

Xerox Planning Acquisitions in E-Discovery Segment

Interesting article on LAW.com website: Xerox Seeks Expansion in and Beyond E-Discovery

Xerox Litigation Services wants to grow its e-discovery catalog -- and grow beyond its parent company's stodgy image.

The historic company's legal technology division, which began as a startup called Amici in 2002 and was acquired by Xerox for $174 million in 2006, plans to buy its way into the information management side of the Electronic Discovery Reference Model.

Xerox's primary e-discovery product is OmniX, used for data collection, hosting, and processing, complemented by the CategoriX predictive coding tool. Both are sold as hosted applications. Now the product catalog needs additional e-mail archiving and document review software, division general manager and vice president Randy Burrows said.

"That's a big part of my job right now, and that's what I'm looking at," Burrows said. "My number one goal here is to do no harm, so I don't want to go out and make a bad acquisition."

Burrows said that Xerox management expects him to make a move but there are no set parameters or timelines. "They're very acquisition-minded and the pressure's more on me. Xerox has got a lot of cash. There is no budget. We'll continue to grow organically and make the right strategic add-ons as we go on," he added.

Forrester analyst Brian Hill, who covers the e-discovery field, said he is not surprised by the plan. "I think it's important. One of the biggest challenges that enterprises have right now, as they go through the e-discovery process, is that they effectively pay a transition tax in working with multiple vendors."

Information management, on the left side of the EDRM workflow, is traditionally a mainstream information technology task. "Xerox has quite a bit of legal talent and expertise, we'll see how effectively they might be able to incorporate an e-discovery tool that has a much stronger IT focus," Hill noted, in Cambridge, Mass.

Burrows declined to say which companies his department, in Albany, N.Y., might buy. Digest-able companies in the hosted archiving space include Global Relay, LiveOffice, Mimecast, Perimeter E-Security, Proofpoint, Sonian, and Smarsh, along with more comprehensive e-discovery firms, from Autonomy to ZL Technologies.

Wednesday, June 01, 2011

Cataphora Legal Joins Ernst & Young

New York, 31 May 2011 – As companies look to streamline their legal review processes and reduce costs associated with e-discovery, Ernst & Young LLP’s Fraud Investigation & Dispute Services (FIDS) practice has combined with Cataphora Legal, a division of Cataphora, Inc., a leader in the management of digital communications. The combination enables Ernst & Young to further enhance its ability to serve and extend additional value to its clients, while allowing the seller, Cataphora, Inc., to focus on selling large-scale data analysis software to the Fortune 1000. The deal closed May 27, 2011, and terms were not disclosed.

Cataphora Legal’s senior leadership team, including Jonathan Nystrom, Executive Vice President, and Richard Oehrle, Chief Linguist, will be joining Ernst & Young LLP and will remain in similar roles. An additional 17 members of the Cataphora Legal team of industry experts, based in Redwood City, CA; Chicago; Washington, DC; New York City and Mumbai, will join the Ernst & Young organization.

“Cataphora Legal has created a one-of-a-kind, innovative model that truly represents the future of discovery and legal technology globally,” said Brian Loughman, Americas FIDS Leader, Ernst & Young LLP. “This addition is part of Ernst & Young’s growth strategy to continually enhance our fraud analytics offering and broaden our relationships with General Counsels and law firms. It also enables us to expand our client base and win new competitive engagements through a highly differentiated offering.”

Monday, May 23, 2011

New York eDiscovery Company for Sale

The following overview was sent to me by Kenyon Group Inc. If you are interested in receiving additional information, please see contact information at the bottom of the post.

Litigation Support and Electronic Data Discovery Company


The company, located in midtown Manhattan in New York City, is a full-service provider of litigation support services. It is a privately held New York limited liability company founded in 2003.

The company provides state-of-the art technology for all imaging and document management services. Large and small law firms rely upon the company to help comprehensively prepare documents for review and storage.

The company's services include collection, organization, review and production of documents.

The company has strong client relationships with several of the top law firms in New York City. A commitment to high quality has resulted in 100% client retention since inception.

With low operating costs and efficient operations, the company has a track record of consistently high margins.

The owner is a young, energetic entrepreneur with a technical background who desires to remain in a management role and focus on business development. He would like to be acquired by a company with the resources to allow him to accelerate his growth trajectory.

Contact Info:
Don Brown
Phone: 562-930-9071
Email: Don@KenyonGroupInc.com

Saturday, May 21, 2011

Gartner Predicts eDiscovery Market to Reach $1.5B in 2013

The following comes from an Evan Koblentz article published by Law.com on May 23, 2011.

+++

The worldwide electronic discovery market saw revenue of $889 million in 2009 and will reach $1.5 billion in 2013, technology research firm Gartner predicted this month.

Upcoming trends in vendor consolidation, industry standards, and a focus on data integration will all be signs of a maturing and increasingly mainstream market, Gartner analysts John Bace and Debra Logan said in their May 13 report, "Magic Quadrant for E-Discovery Software."

The analysts see five leaders in e-discovery: Autonomy, Clearwell Systems, FTI Technology, Guidance Software and kCura. Autonomy and Clearwell both expanded further last week, with the former buying much of archiving specialist Iron Mountain's product lineup on Monday for $380 million and the latter being acquired by data management giant Symantec on Thursday for $390 million.

A quarter of all e-discovery companies will be consolidated by 2014, Bace and Logan said, and mainstream IT companies are expected to get involved. "We've had interest from [Hewlett-Packard], as they've announced information governance at least," via a partnership with Clearwell established in January 2008, Logan said. "Will Oracle do something? And certainly anyone who sells storage will have to do something with this," along with Microsoft which already has email archiving technology, she said.

Bace and Logan also said customers should pay attention to challengers EMC, IBM, and Nuix. (They also put Symantec in the challengers category, but its situation may change because of the Clearwell deal, and a new report about that is being prepared, they said.

Likely acquisitions targets include the companies in Stamford, Conn.-based Gartner's industry visionaries category -- AccessData Group, CaseCentral, Catalyst Repository Systems, CommVault, Exterro, Recommind and ZyLab, Logan added.

Friday, May 20, 2011

Nuix Receives Major Shareholder Investment from Macquarie Capital Group

SYDNEY & WASHINGTON --May 17, 2011-- Nuix, a leading provider of electronic discovery (eDiscovery) and investigation technology software, today announced that Macquarie Capital Group Limited has invested in its business, accelerating the company’s next phase of business growth and expansion.

Macquarie’s decision to invest in Nuix is in recognition of the company’s outstanding technological innovation and strong financial performance over the past five years.

Nuix has customers in over 25 countries, including the world’s leading corporate regulators, advisory firms, litigation support and law firms, as well as a growing number of corporate customers, particularly in the financial sector.

Macquarie Capital Group Limited Executive Director, David Standen, said: “Nuix has an outstanding leadership team which has positioned Nuix to be a real market leader and deliver world-class eDiscovery solutions to its customers.”

Nuix CEO Eddie Sheehy said: "We are excited to have Macquarie as a major shareholder. We could not ask for a better partner to support our growth. Nuix competes against some of the world’s largest technology companies and Macquarie’s investment will enable us to continue to provide outstanding customer solutions as we continue to enjoy significant global growth.”

Symantec to Acquire Clearwell Systems for $390 Million

MOUNTAIN VIEW, Calif. – May 19, 2011 – Symantec Corp. (Nasdaq: SYMC) today announced it has signed a definitive agreement to acquire privately-held Clearwell Systems, Inc., a recognized leader in the eDiscovery market. The acquisition of Clearwell will bring together the industry’s leading eDiscovery, archiving and backup offerings to provide customers one of the most comprehensive information management solutions available. Under the terms of the agreement, Symantec will acquire Clearwell for a purchase price of approximately $390 million, net of Clearwell’s existing cash balance of approximately $20 million. The agreement is subject to customary closing conditions, including regulatory approval, and is expected to close in the September quarter.

“As information continues to grow at unprecedented rates, the biggest challenge for customers is to protect, manage and backup this information as well as have the ability to categorize and discover it efficiently,” said Deepak Mohan, senior vice president, Information Management Group, Symantec. “The acquisition of Clearwell’s market leading electronic discovery solution will further increase Symantec’s ability to get the right information, to the right people, at the right time, while reducing overall legal review costs and limiting risk.”

Clearwell's eDiscovery solution complements and enhances Symantec’s Enterprise Vault eDiscovery capabilities to create a more complete end-to-end eDiscovery solution. The existing integration of Enterprise Vault with the Clearwell eDiscovery Platform positions Symantec to quickly help IT and legal users streamline and reduce the cost, time and risk of eDiscovery across the most relevant information sources including email, desktops, file servers, backups and the cloud.

This acquisition will expand Symantec’s addressable market opportunity and will position the company as a leader in the fast-growing eDiscovery software market, which, according to Gartner, is growing at a compounded annual growth rate of 14 percent and is estimated to reach $1.7 billion by 20141. In addition, this acquisition is expected to provide future cross-sell and product integration synergies across Symantec backup and security, by leveraging Symantec NetBackup, Data Loss Prevention and Data Insight.

Wednesday, May 18, 2011

Autonomy to Acquire eDiscovery Business from Iron Mountain

Cambridge, England and San Francisco - 16 May 2011 - Autonomy Corporation plc (LSE: AU. or AU.L), a global leader in infrastructure software, and Iron Mountain Incorporated (NYSE: IRM), the information management company, today announced a definitive agreement for Autonomy to acquire selected key assets of Iron Mountain's digital division including archiving, eDiscovery and online backup. For customers, this means access to Autonomy's advanced technology for information governance in secure, private clouds in data centers around the world.

Acquisition Highlights


Cash consideration of $380 million (subject to a final working capital adjustment), funded from Autonomy's existing cash reserves. Post-closing Autonomy expects to have a gross cash balance of at least $700 million.

Adds over six petabytes of data under management and more than 6,000 customers to Autonomy's customer base, bringing Autonomy's private cloud data to over 25 petabytes and total customer base to over 25,000.

Assets acquired include digital archiving, eDiscovery and online backup and recovery solutions of Iron Mountain Digital, but not the technology escrow service and a medical records archive service and other smaller operations which were recently shut down.

Active Iron Mountain Digital customers will continue to be supported without disruption.

Autonomy to offer Connected, the digital data protection product, to existing Autonomy customers across enterprise server, PC and mobile devices. The addition of this product drives non-regulatory and structured data into our cloud-based information processing platform.

Expected go-forward revenues of approximately $130 million to $140 million.

Expect to achieve cost synergies of approximately $40 million per annum over the first year from completion, from a combination of efficiencies from utilization of

Restructuring costs of approximately $10 million expected in the two quarters following completion.

Acquisition expected to have traditional effect on gross margins and operating margins in first few quarters following completion with the result of slight earnings dilution in the first quarter after close, neutral for the full year 2011, and expected adjusted earnings per share accretion of approximately 15% in 2012. We would expect gross margins and operating margins to return to historical levels within one to two quarters of completion.

Friday, April 15, 2011

Austin's StoredIQ raises $9.9M

The Austin Business Journal reported that software maker StoredIQ Inc. received $9.9 million of a planned $11.4 million financing.

The Austin-based company — a developer of information management, compliance and electronic discovery software — collected the capital from 10 investors, according to a Thursday filing with the U.S. Securities and Exchange Commission.

The filing is an amendment to a November 2010 filing in which StoredIQ reported receiving $4.9 million of the $11.4 million Series D round of funding.

The company, founded in 2001, employed about 54 workers last year. It changed its name from Deepfile Corp. in early 2005.

In 2009, the company closed an $8 million Series C round of financing. Investors included Arizona-based PerformanceEdge Partners and two Austin-based firms, S3 Ventures and Techxas Ventures.

In October 2010, the company selected PerformanceEdge co-founder and general manager Phil Myers as its CEO, and H.E. Buddy Wilson as vice president of business development.

Monday, April 04, 2011

Epiq Systems Acquires Encore Discovery for $100 Million

KANSAS CITY, Kan., April 4, 2011 -- Epiq Systems, Inc. (Nadaq:EPIQ), a leading global provider of technology solutions for the legal profession, today announced the acquisition of Encore Discovery Solutions for $100 million cash. With this transaction, Epiq further strengthens its worldwide e-discovery franchise providing corporate legal departments and law firms with full-service capabilities to manage electronic information for discovery, investigations, compliance and related legal matters. The transaction has closed and was funded from the company's credit facility.

Based in Phoenix, Encore Discovery Solutions provides market-proven products and services for electronic evidence processing, document review platforms, and professional services for project management, data collection and forensic consulting. For 2010, on a pro forma basis, Encore represents an approximate 50% revenue increase to Epiq Systems' standalone e-discovery segment, which had 2010 operating revenue of approximately $81 million.

In its continuing evaluation of strategic opportunities, Epiq Systems has prioritized the identification of e-discovery candidates with both compatible business strategies and complementary financial profiles. In these respects, Encore represents a natural extension and an attractive market share expansion.

Epiq Systems has a high growth, leading global position in the market for e-discovery technologies and professional services. For 2010, Epiq's e-discovery business experienced a 92% increase in non-GAAP adjusted EBITDA exclusively through organic growth. Through the Encore acquisition, the company's e-discovery segment experiences a significant revenue increase and gains immediate access to a high quality customer base having almost no overlap with Epiq's existing clientele. Encore's clients will benefit from Epiq Systems' service capacity, international offices, data centers, and document review services.

While Epiq Systems has developed its e-discovery franchise based on proprietary, internally developed software including its DocuMatrix(R) review platform and eDataMatrix(R) evidence processing engine, Encore has approached the market with a selection of licensed third party tools from which clients can choose. Going forward, Epiq Systems will make both solution sets available, thereby offering to customers capabilities of unprecedented breadth and depth. Based on the size, complexity and service level required by each client matter, Epiq will be ideally positioned to present a tailored package of products and services.

Encore's primary operations and client service facility is located in Phoenix, and they will continue to operate from this office location by blending into Epiq's total e-discovery service infrastructure.

Tom W. Olofson, chairman and CEO, and Christopher E. Olofson, president and COO of Epiq Systems, stated, "Today's acquisition further augments and accelerates the opportunity for our highly successful global e-discovery business. Encore has a strong customer base that complements our own, and the company's Phoenix location is an excellent geographic counterbalance to our own domestic presence in New York. By continuing the availability of both businesses' products, services and technologies, we offer the industry's best mixture of resources, experience and subject matter expertise."

Thursday, March 31, 2011

Huron Legal Adds LECG E-Discovery Unit

CHICAGO, Mar 31, 2011 -- Huron Consulting Group (NASDAQ: HURN), a leading provider of business consulting services, today announced the acquisition of a group of 13 e-discovery related consultants including Michael Bandemer, as a managing director, and Robert Hichens, Sergio Kopelev, and Alan "Skip" Westfall, as directors. The group joins Huron Legal from LECG and will focus on client e-discovery, forensics and data analysis issues.

"Law departments and law firms need help managing both efficiency and cost in complex litigation, investigation and transaction document production situations. With the rise of digital communication, the amount of information has skyrocketed, making it harder for clients to control and manage their e-discovery processes and costs," said Shahzad Bashir, vice president, Huron Legal. "We are pleased to welcome Michael and the team from LECG. They will complement Huron Legal's expertise in e-discovery matters, and we are confident that they will be a great resource for our law department and law firm clients."

Bandemer, based in San Diego, CA, led LECG's Legal Technology practice and has 20 years of experience in investigations, financial analysis, and technology matters. Focusing on e-discovery and computer forensics, he advises both corporate and law firm clients on technology issues including information management, litigation readiness, compliance, cost control, evidence hold and preservation, collection and search, forensic analysis of digital media, complex data analytics, and other information technology related matters. Bandemer has also provided qualified expert testimony at deposition, arbitration, federal and state courts and has served as a special master and third-party neutral.

The LECG addition will broaden Huron Legal's West Coast presence, and is another move to further strengthen the Company's domestic and global e-discovery and cost savings services.

Thursday, February 03, 2011

Wave Software Acquires iFramework from Intelligent Discovery Solutions

ORLANDO, FL (January 31, 2011) - Orlando-based Wave Software, a leading provider of early case assessment, legal hold and electronic data discovery technology for global corporations, today announced it has acquired iFramework from Intelligent Discovery Solutions. In July 2009, Wave Software formalized a strategic partnership with iFramework and integrated it with Trident Pro, its electronic discovery technology. Successful product integration led to the acquisition which will allow the company to more closely align its products and development team and expand its technology across more of the case and project management aspect of litigation.

iFramework has established itself as a leader in the litigation project management space. It is currently being used by AmLaw 100 law firms to manage work flow, tasks, calendars, evidence, vendors and invoices. iFramework and Trident Pro’s automated processes and tools allow for an unprecedented view into the discovery lifecycle.

Now, as part of Trident Pro and Wave Software’s entire suite of products, users will be able to filter and cull discovery data, including foreign language documents, PSTs, NSFs and loose files, plus see near-real-time metrics on the tasks being performed. This acquisition and integration will allow project managers to better control projects and meet deadlines because the metrics of their projects processed in Trident Pro will be easily accessible and continually updated within the application. Managers will have access to project data, down to a custodian level, including processing status, volume, and speed. They will also have the ability to track and resource balance multiple instances of Trident Pro, running on the same or varied projects, all from one central location that also integrates with the tracking of team members, tasks, calendars and evidence.

Robert Childress, Wave Software co-founder and President, stated, “This increased investment in technology, coupled with access to the broad resources of our R&D department, will be advantageous for our clients as well. In addition to giving us the ability to offer complete integrated project management and electronic data discovery software to our clients, the investment will result in rapid development of future solutions and produce more reliable, easy-to-use technologies.”

Friday, January 14, 2011

Iris Data Services Acquires New York Based Itek Imaging

Following an acquisition of Lexsum, Inc. in January 2010 and an acquisition of Capitol Discovery Services in December 2010, Iris Data makes its third acquisition in 12 months, with the purchase of Itek Imaging. Iris Data predicts an 11 percent revenue increase from this most recent acquisition.

NEW YORK, January 10, 2011 — Iris Data Services Inc., a leading provider of discovery solutions, announced today that it has acquired Itek Imaging, LLC, a major provider of full service litigation support including eDiscovery, computer forensics, and imaging & coding to the New York City area. Itek’s downtown location at 307 West 38th Street, Suite 807, New York, NY 10018, 212-643-3000, will expand Iris’ production capacity and compliment its existing data center at 111 Eighth Avenue, New York, NY, 10011. 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™.

Wednesday, January 12, 2011

IVIZE Services, Inc. Secures New Growth-Oriented Investors

CHARLOTTE, NC – Ivize Services, Inc., an industry leader in litigation support services, announced that Azalea Capital, along with Ivize CEO Ron Self and CFO Mark Marmon, led a recapitalization of the business to accelerate future growth. “This strong financial support will allow us to pursue several growth initiatives and further differentiate the Ivize service offerings in our 14 regional markets,” said Ron Self, president and CEO. “Our 3,000 clients can remain confident that Ivize will continue to serve their litigation support needs and develop innovative, insightful, and informative solutions.”

With this new capital investment, Ivize will strengthen its capability to locally deliver superior electronic discovery, processing, and hosting services, while maintaining excellent support for its clients’ paper-based imaging needs. “We want Ivize to be the preferred one-stop local supplier for the entire spectrum of data discovery services,” added Self.

Azalea Capital is a private equity firm based in Greenville, SC. “Azalea Capital invests in well-managed companies that are committed to growth and excellence,” said Patrick Weston, managing partner of Azalea Capital. “We are impressed by the Ivize management team’s bold vision, its strong market position, and reputation for quality service. We see potential for growth of the e-Discovery market.” The recapitalization of Ivize was also supported by Harbert Mezzanine Partners of Nashville, Tenn., and Fifth Third Bank of Charlotte, NC.

Wednesday, January 05, 2011

Private Equity Firm Acquires First Advantage for $265 Million

CoreLogic in Santa Ana has spun off and sold for $265 million its employer services and litigation support businesses to Symphony Technology Group, a Palo Alto private equity firm, PEHub reports.

The newly spun-off entity is named First Advantage. CoreLogic will retain its remaining businesses. It is an all-cash transaction. CoreLogic, which owns the nation's largest database on real estate and consumer data, was itself spun off in November 2009 by First American Corp., real estate data giant in Santa Ana.

CoreLogic announced in August its intent to sell its employer services and litigation support businesses. "The successful sale of these businesses represents a significant milestone for CoreLogic," said Anand Nallathambi, president and CEO of CoreLogic. "These are valuable businesses with good growth potential, but we determined that they do not have a long-term strategic fit within CoreLogic. We are pleased with the outcome of the sales process and are confident that STG will build on the market-leading position held by these businesses. "He added that CoreLogic intends to use the proceeds from the sale to buy other companies that are a better strategic fit.

Symphony Managing Partner Bill Chisholm said, "First Advantage has a long history of providing a comprehensive suite of solutions to customers in its core markets. We are delighted to partner with the management team to build a leading HR and legal information- and technology-enabled services company.

"Macquarie Capital advised CoreLogic in the sale process for the First Advantage businesses.