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."