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.”