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.

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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.