Friday, November 30, 2012

DTI Acquires Fios

ATLANTA, GA and PORTLAND, OR—November 29, 2012—DTI, the nation’s largest independent provider of discovery services, facilities management, and knowledge process outsourcing, today announced its acquisition of Fios, Inc., a pioneering firm in electronic discovery and one of the industry’s most recognized brands. Effective immediately, the company will be known as “Fios, A DTI Company.”

Since its inception in 1999, Portland, Oregon-based Fios has advocated approaches that reduce the costs and the risks of e-discovery. This is most notably executed through the smart application of best-in-breed technologies, such as those offered by kCura, Venio, Equivio, and Content Analyst. Going forward, the company will expand on this strategy by enhancing the broader DTI organization with additional experienced project managers and operations team members, a majority of whom are Relativity Certified Administrators. In addition, the Fios acquisition will provide DTI clients with expanded product development resources and proprietary workflow applications, such as the Fios Redaction Assistant.

“We felt the opportunity to bring Fios into the DTI family was quite attractive. They have exactly what we look for—an exceptional group of high-performing employees, a respected name, strong relationships with an impressive list of AmLaw 100 and Fortune 500 corporate clients, and most importantly, similar values and corporate cultures,” said John Davenport Jr., president and CEO, DTI. “DTI will leverage this expertise to continue advancing our leadership position in the discovery services market.”

Fios is one of only six Relativity Orange Best-in-Service companies out of 140 total Premium Hosting Providers worldwide. To earn this designation, Fios had to pass evaluations and audits for technical expertise, customer service, product knowledge, and scale of operations while maintaining an established installed base exceeding 1,000 active Relativity users.

“DTI has been a market leader to watch in recent years,” said Katey Wood, an analyst at the Enterprise Strategy Group. “The company has aggressively expanded its geographic reach and built out its digital services arm to become a cross-functional asset to businesses across the country. With this most recent acquisition of Fios, the company gains a stronghold of highly distinguished Relativity talent and acumen.”

Terms of the current deal — which is DTI's third this year — were not disclosed. In September, DTI acquired legal staffing company Provius, based in Houston. In July, DTI bought computer forensics specialist Data Forté, of Los Angeles.

Thursday, November 01, 2012

Elite Document Technology Acquires Dallas based Peritia Data Discovery

Dallas, Texas -- November 01, 2012

Terry Reeves, CEO of Elite Document Technology, today announced that the company has acquired Peritia Data Discovery. Peritia was formerly Litigation Solution, Inc. and has been a well-known litigation support provider in Texas since 1994. Peritia provides sophisticated technologies for electronic discovery, with an emphasis on consultative implementation for more competitive litigation support solutions.

The acquisition of Peritia positions Elite at the forefront of litigation support providers. By combining the strengths of the two companies, Elite is now one of the most comprehensive solution providers in the industry. The team at Peritia brings deep expertise in e-discovery tools and technologies. They are veterans of the litigation support industry, and they provide a consultative approach that makes discovery more affordable and efficient.

“Elite already offers a wide variety of legal support options, but adding the Peritia products takes us to a whole new level,” said Terry Reeves, owner and CEO of Elite. “We are especially excited to add Viewpoint to our product line. Our research of litigation support software has convinced us that Viewpoint is the best e-discovery technology on the market. Terry Vaughan and the team at Peritia really know industry best-practices, and they provide the best training and support for Viewpoint.”

Elite customers will also appreciate the security of the new Tier 4 data center that Peritia has for their cloud-based hosting services which is a perfect combination with Elite’s internal private cloud. By moving from desktop applications to a private cloud computing architecture, users gain access to a wider range of functions and features, and eliminate the need to constantly monitor, evaluate and purchase new software. This type of data infrastructure offers the most powerful processing resources, flexible storage capacities, high data accessibility and security features available.

“We have partnered with Elite on many projects over the years, and we have always been impressed with their level of quality and commitment to their clients,” said Terry Vaughan, owner and president of Peritia Data Discovery, who joins the Elite team as a Litigation Support Consultant. “This acquisition makes sense for all of us at both companies, but it’s the customers who will really benefit. The wider range of products and services available to law firms and corporate legal departments will streamline litigation and help reduce costs.”

Friday, October 19, 2012

Xact Data Discovery Acquirers Houston Based Flash Discovery

October 17, 2012 --Xact Data Discovery (XDD), an international leading provider of data discovery and management services to law firms, corporations and government agencies with 16 offices nationally, recently acquired Flash Discovery in Houston, Texas helping to further expand the company’s nationwide presence.  This acquisition marks the second in as many months as XDD continues its expansion endeavors in the US.

The acquisition included 100% of all business assets, personnel and current customers.   Ferdinand Andres, an owner of Flash Discovery and a long-time employee of XDD, will be responsible for the XDD Houston new office.

According to Bob Polus, Xact Data Discovery’s President and CEO, “we have a significant client base in Houston, Texas for our ESI service offerings.  With the acquisition of Flash Discovery, we can now offer local, streamlined Paper Discovery services as well.”  Polus went on to add, “we have tremendous confidence in Ferd Andres and in his passion for providing excellent customer service and work product.”

Xact Data Discovery (XDD) is an international Data Discovery and Management company providing streamlined Forensic, Processing, Hosting, Document Review, Project Management, Imaging & Coding and Paper Discovery services to law firms, corporations and government agencies.  At Xact Data Discovery, communication is everything—because clients need to know where their data is throughout the entirediscovery life cycle—as well as understand the valuable information and knowledge they can obtain from it.

Monday, October 08, 2012

Digital Reef Acquired By TransPerfect

NEW YORK and BOSTON, October 4, 2012 – TransPerfect Legal Solutions (TLS), a leading global provider of legal support services, announced the acquisition of Boston-based Digital Reef, Inc. Digital Reef will become a division of TransPerfect Legal Solutions. Financial terms of the acquisition were not disclosed.

Founded in 2006, Digital Reef was named a Market Leader in IDC’s most recent MarketScape of standalone early case assessment (ECA) applications. Digital Reef is a leading eDiscovery software provider for corporations, law firms, and litigation support service providers with complex discovery requirements. The company’s eDiscovery platform, available in both on-premise and SaaS versions, is an enterprise-scale solution used in legal matters, regulatory inquiries, and corporate investigations.

“Digital Reef has been increasingly used by the world’s largest corporations and law firms for multijurisdictional, complex cases. Combining Digital Reef’s unique Big Data processing power with the global footprint of TransPerfect will provide our clients with a new level of service and scalability,” said Ivan O'Sullivan, chief operating officer of Digital Reef. “TransPerfect has more than 80 offices worldwide and an array of global data centers. Our clients will benefit from greater support around the country and around the world.” As part of the merger, Mr. O'Sullivan will continue to lead Digital Reef and will join TransPerfect's senior management team.

According to TransPerfect Co-CEO Phil Shawe, “We are very excited to welcome the Digital Reef team to the TransPerfect family. TLS clients will benefit from having access to a variety of ECA tools delivered by the Digital Reef platform. Further, Digital Reef's facility is, to the best of our knowledge, the highest throughput eDiscovery data center in the world, with the capability of processing more than 17 terabytes of data per day. This capability has earned Digital Reef its reputation for being the industry’s fastest, most scalable eDiscovery software solution.”

Thursday, October 04, 2012

DTI Continues to Expand Document Review and Legal Staffing Capabilities Through Providus Acquisition

ATLANTA, GA and HOUSTON, TX, Sep 18, 2012 -- DTI, the nation's largest independent provider of discovery services, facilities management, and knowledge process outsourcing, today announced the acquisition of Texas-based Providus, a leading provider of legal staffing, recruiting, and document review services. The acquisition underscores DTI's ongoing focus to deliver comprehensive and defensible e-discovery and review services as well as innovative legal staffing solutions. 

Providus provides attorneys, paralegals and other legal professionals on a contract and direct-hire basis to law firms and corporate legal departments. The Providus suite of services is strongly aligned with DTI's e-discovery and review service strategy. Providus has an impeccable market reputation for staffing substantive attorney, paralegal and legal support projects as well as staffing large-scale document review projects on-site and within its own document review centers across the United States. Providus has also become a leader in providing highly specialized attorneys and paralegals -- including engagements where foreign language fluency is a requirement. 

As part of the acquisition, DTI will add Providus' highly secure, state-of-the-art document review centers and fully-staffed offices to the DTI platform. Each Providus office in major markets, including Chicago, Houston, Los Angeles and New York City will become part of the DTI family.

"Combining Providus' legal staffing and document review expertise and DTI's e-discovery services will create a unique and superior managed document review business supporting both law firms and corporations nationwide," said John Davenport, Jr., Founder and Chief Executive Officer of DTI. "We were struck by the similarity of our cultures and client-oriented view. Like us, Providus has forged strong relationships with its clients and we intend to build upon that momentum. As a unified team, we will be able to deliver a wider and more impactful scope of support to our clients."

Thursday, September 13, 2012

eDiscovery Industry M&A Activities Over The Past 10 Years

ComplexDiscovery updated their webpage: 10 Years of eDiscovery Mergers, Acquisitions and Investments on 8/6/12.

Some of the highlights included in the 2012 list are:
  • 7/2/12 Xerox acquired Lateral Data for $30M.
  • 4/10/12 FTV Capital invested $37M in Catalyst Repository Systems.
  • 2/7/12 Guidance Software acquired CaseCentral for $17.1M.
  • 1/6/12 Sirus Capital acquired Applied Discovery.

Please visit the ComplexDiscovery website for the entire list.

Wednesday, August 08, 2012

eDiscovery (Software and Service) Market is Expected to Reach $9.9 Billion Globally in 2017


ALBANY, New York -- August 8, 2012

According to a new market report published by Transparency Market Research (http://www.transparencymarketresearch.com) "eDiscovery (Software and Service) Market - Global Scenario, Trends, Industry Analysis, Size, Share and Forecast, 2010 - 2017," the global e-discovery market was worth USD 3.6 billion in 2010 and is expected to reach USD 9.9 billion in 2017, growing at a CAGR of 15.4% from 2010 to 2017. In the overall global market, the U.S. is expected to maintain its lead position in terms of revenue with 73% of global e-discovery market share in 2017.

Browse the full report at:
http://www.transparencymarketresearch.com/ediscovery-market.html

Key factors driving the global e-discovery market include increasing adoption of predictive coding, growing risk mitigation activities in organizations, increase in criminal prosecutions and civil litigation and growth of record management across various industries. The U.S. eDiscovery market was valued at USD 3.0 billion in 2010, and is estimated to grow at a CAGR of 13.3% from 2010 to 2017 to reach USD 7.2 billion by 2017. The rest of the world e-discovery market is expected to grow at a CAGR of 23.2% to reach USD 2.7 billion by 2017.

This report broadly segments the e-discovery market into software based eDiscovery and services based eDiscovery. The global e-discovery software market was valued at USD 1.1 billion in 2010 and is expected to grow at a CAGR of 11.5% to reach USD 2.5 billion by 2017. The global e-discovery services market is expected to grow at a CAGR of 17.0% from 2011 to 2017.

In the next five years, the e-discovery industry growth will get further support from increasing automatic enterprise information archiving applications, growth in multi-media search for sound and visual data, next generation technology growth for cloud computing i.e. virtualization and increasing involvement of organizations in the social media space.

Kenyon Group Advises Lateral Data on its Sale to Xerox Litigation Services

Kenyon Group, Inc. is pleased to announce that Xerox has acquired their client, LateralData of Houston, Texas, for $30 million.  The acquisition solidifies Xerox's position in the e-discovery market by complementing the services, technology, and consulting offerings of Xerox Litigation Services.  

Lateral Data's flagship software, Viewpoint™, brings simplicity and affordability to e-discovery by enabling corporate legal departments and law firms to manage the entire e-discovery lifecycle using a single, in-house solution.  "Viewpoint offers the most comprehensive and integrated e-discovery functionality available in a single software solution," said Randall Burrows, managing director of Xerox Litigation Services.  "With the acquisition of Lateral Data, Xerox now offers customers greater flexibility for meeting their e-discovery needs.  Clients can choose a full service cloud-based approach, a do-it-yourself on premise solution, or a customized combination of both.” 


About Kenyon Group, Inc.
Kenyon Group, Inc. (www.KenyonGroupInc.com) is a merger and acquisition advisory firm primarily representing business owners seeking a maximum return from a sale of their business.  Our focus is on technology businesses and companies providing business services often supported by proprietary technology.  Kenyon has earned a reputation as the leader in M&A advisory services to litigation support, legal technology, and legal staffing companies with a growing presence in content, knowledge, and record management markets.

Xact Data Discovery Acquires K&B Document Technologies

Minneapolis, MN -- August 3, 2012 

Mission, Kan.-based Xact Data Discovery will absorb Minneapolis-based K&B Document Technologies in a deal that closed on August 1, said Xact President and CEO Bob Polus and K&B President Nick Barry.

Xact is a data-discovery and management service provider with legal, corporate and government clients and 16 offices outside of Minnesota. K&B, a document-processing and management provider serving law firms and corporations, had about $3.5 million in revenue in 2011. The combined Minnesota business, operating under the Xact brand, will have about $6.5 million in revenue and about 65 employees.

Barry and co-owner Brad Kair will retain an equity stake as partners. Other terms of the deal were not disclosed.

Xact will move its Minneapolis office to K&B’s downtown Minneapolis office. Layoffs are not expected, Polus and Barry said.

D4 Acquires Target Litigation Solutions

ROCHESTER, NY ‒ August 02, 2012D4, LLC, a national leader in litigation support and eDiscovery services to law firms and corporate law departments, today announced the launch of its full-service operation in Phoenix. The expansion into Phoenix, through the acquisition of On Target Litigation Solutions, increases D4’s national footprint and compliments services in the western region of the U.S. D4’s continued national expansion is driven by strong customer and partner demand, as organizations recognize the importance of working with partners able to deliver innovative and sound eDiscovery solutions and managed service offerings.

“We see tremendous growth potential in Phoenix,” said John Holland, founder and CEO, D4. “On Target Litigation Solutions has established itself as a company with highly specialized litigation technology offerings. We are very pleased to bring On Target into the D4 family as we continue to deliver on our vision of providing comprehensive litigation support solutions to companies throughout the country. Clients will immediately benefit from having direct access to the resources and expertise of a larger, national company.”

D4’s Phoenix office will be led by Ryan Best. Ryan has over 13 years of experience in both ESI consulting and the litigation support industry; he has led On Target to become one of the nation’s premier legal services companies. Prior to founding On Target, Ryan worked for Capital Digital Document Solutions as the National Director of Electronic Discovery and also worked at Xact Data Services and Legal America LTD. D4 Phoenix will continue to specialize in a very technical approach creating electronic discovery solutions for clients.

Monday, July 02, 2012

Xerox Acquirers Houston Based Lateral Data

DALLAS -- Xerox (NYSE: XRX), today announced the acquisition of Lateral Data, a leading e-discovery technology provider, for $30 million. Lateral Data’s flagship software, Viewpoint™, brings simplicity and affordability to e-discovery by enabling corporate legal departments and law firms to manage the entire e-discovery lifecycle using a single, in-house solution. E-discovery is the process where electronic data is sought, located, searched and secured for potential use as evidence in legal and regulatory matters.
 
The acquisition solidifies Xerox’s position in the e-discovery market by complementing the services, technology and consulting offerings of Xerox Litigation Services. Xerox estimates the enterprise e-discovery market will be approximately $1.6 billion by 2013.
 
Viewpoint helps legal and IT departments and law firms to lower the total cost of e-discovery by streamlining cumbersome and time-consuming processes that traditionally require the purchase of disparate products and services from multiple vendors. Using Viewpoint, clients can simplify the collection, analysis, review and management of data across complex information sources – including social media, servers, email, desktops and cloud-based email and business collaboration platforms like Google Docs and Microsoft SharePoint – all from a single platform. Viewpoint can be deployed in the cloud or installed behind the client’s firewall.
 
“Viewpoint offers the most comprehensive and integrated e-discovery functionality available in a single software solution,” said Randall Burrows, managing director of Xerox Litigation Services. “With the acquisition of Lateral Data, Xerox now offers customers greater flexibility for meeting their e-discovery needs. Clients can choose a full service cloud-based approach, a do-it-yourself on premise solution or a customized combination of both.”
 
The Viewpoint platform also offers advanced capabilities for filtering and processing data up to five times faster than any e-discovery software, giving clients the ability to conduct early case assessments and analyze relevant data sooner. This reduces costs related to processing, reviewing and hosting non-relevant data at the beginning of a legal matter.

Monday, June 25, 2012

Deloitte Acquires Assets of IE Discovery

NEW YORK, June 25, 2012 -- Deloitte today announced that it has acquired substantially all of the assets of IE Discovery, a provider of electronic discovery (e-discovery) management and litigation support solutions that primarily serves federal government clients.  Terms of the acquisition were not disclosed.

"We are committed to providing our clients innovative e-discovery solutions and services," said David Williams, chief executive officer, Deloitte Financial Advisory Services LLP.  "By combining Deloitte's strong existing e-discovery capabilities with IE Discovery's deep experience in discovery management and litigation support, we will offer expanded solutions to our federal government clients."

Deloitte has more than 500 professionals who provide analytic and forensic technology services in the U.S., including e-discovery and, together with the other subsidiaries of Deloitte LLP, have more than 6,600 professionals serving U.S. federal government agencies.

Robin Lineberger, chief executive officer, Federal Government Services practice, Deloitte LLP, added, "IE Discovery has supported e-discovery for thousands of matters in support of U.S. federal government agencies. We look forward to leveraging IE Discovery's significant experience to help Deloitte's federal clients navigate the challenges presented by government litigation."

Founded in 1990, IE Discovery helps government and corporate legal teams by providing a full spectrum of innovative, high quality, cost efficient e-discovery services so that legal teams can focus on formulating and executing case strategy.  IE Discovery is headquartered in Austin, Tex., with additional offices in Arlington, Va.

"Both Deloitte and IE Discovery have deep experience serving federal agencies," said Chris May, chief executive officer, IE Discovery.  "Deloitte's scalability and relationships with top government agency executives, and its strong commercial e-discovery practice, will help us all to continue to grow a leading federal e-discovery practice."

eDiscovery Funding and M&A Activity, May - June 2012

Below is a summary of recent funding and M&A activity over the last few weeks in the eDiscovery space.


RVM Enterprises, Inc. Acquires N-Tier Discovery

NEW YORK, May 15, 2012 (BUSINESS WIRE) -- RVM, a leading provider of litigation support and corporate data solutions, announced today that it has acquired the business and assets of N-Tier Discovery, a leading-edge managed document review, staffing, and consulting firm specializing in the application of advanced analytics in document review. The acquisition will add best-of-breed attorney review services to RVM's already premier eDiscovery service offering. RVM clients will now benefit from true end-to-end solutions, generating significant operating efficiencies and cost savings.

Trinity Hunt Invests In E-Discovery Company 'Equivalent DATA'

DALLAS, May 16, 2012 /PRNewswire via COMTEX/ -- Trinity Hunt Partners, a Dallas-based private equity firm with an extensive track record of partnering with business owners to build value, today announced the firm has made an investment in Houston-based Equivalent DATA, Inc. (" EQD")  Terms of the transaction were not disclosed.  EQD provides large-scale electronic discovery services to both top-tier law firms and Global 2000 corporate legal departments nationwide. NeedleFinder®, the firm's proprietary eDiscovery software, is recognized as one of the most comprehensive end-to-end solutions in the industry.

SuperiorGlacier Acquires Sight Search & Selection

NEW YORK, NY, May 29, 2012 (MARKETWIRE via COMTEX) -- On the heels of its recent acquisition of Intelligent Discovery Management (IDM), SuperiorGlacier announced today that its SRM Legal division has acquired Sight Search & Selection, a premier legal technology staffing company. The acquisition uniquely positions SRM Legal to provide a broad spectrum of legal technology staffing, from document review to critical litigation support departmental positions. 

LexisNexis Acquires Sanction Solutions

NEW YORK, Jun 04, 2012 (BUSINESS WIRE) -- LexisNexis(R) Legal & Professional today announced that it has acquired Sanction Solutions(R), a leading provider of innovative presentation software and services used by lawyers, paralegals and litigation support directors.  Sanction(R) litigation presentation software provides litigators a single resource to quickly assemble documents, exhibits, transcripts, questions, visuals and video that will be used to manage and present evidence throughout litigation, categorize them, and then create clear, polished and compelling presentation materials necessary for building a case. 

Flex Discovery Acquires Landmark Legal Solutions

AUSTIN, TEXAS--(Marketwire - June 6, 2012) - Flex Discovery, a premiere Texas-based electronic discovery services provider, announced today the company's acquisition of Landmark Legal Solutions. The acquisition includes Landmark's headquarters location in Chicago, IL, and its Washington, D.C. location. The former Landmark Legal Solutions is now known as "Landmark, a Flex Discovery company." During the integration period, Flex Discovery will continue to sell discovery services under both brands while consolidating operations under the Flex Discovery umbrella. 

Friday, April 13, 2012

Catalyst Receives $32 Million Equity Investment

DENVER—April 10, 2012—Catalyst Repository Systems, a pioneer in providing cloud-based document repositories for e-discovery and other complex legal matters, today announced that FTV Capital, a multi-stage growth equity firm that invests in innovative, high-growth companies, acquired a significant stake in the company, investing a total of $32 million.

Catalyst has been a leading provider of e-discovery software and services for more than a decade. Based in Denver, the company has over 140 experienced litigation and technology professionals located around the world. It provides proprietary grid-based document repositories and case-collaboration systems designed to cost-effectively handle the world’s largest legal matters, from multi-language e-discovery to multi-party litigation and regulatory matters.

Catalyst’s revenue grew 31% in 2011 and is projected to grow another 34% this year. In 2010, the company launched an Asia division to better serve its clients there backed by a full-featured, state-of-the-art data center in Japan to meet the needs of clients throughout the Asia-Pacific region. Over the past decade, the company has repeatedly been named as one of the fastest growing private companies by such organizations as Inc. 5000 and the Deloitte Fast 500.

“We are highly enthusiastic about partnering with Catalyst, given the significant achievements and momentum of this company, “said Eric Byunn, FTV partner and new Catalyst board member. “Catalyst’s long-tenured, proven management team has built a differentiated, proprietary technology offering that has attracted an impressive client base of blue chip companies and large law firms. Global demand for e-discovery is huge and growing rapidly, and Catalyst is well-positioned to capitalize on this multi-billion dollar market.”

“FTV’s new investment represents a powerful endorsement of Catalyst’s accomplishments and strong outlook, bolstered by the continued support from our initial investors, who have retained a stake in the company,” said John Tredennick, CEO of Catalyst. “FTV brings domain expertise and a strong network of industry contacts which will help contribute to Catalyst’s continued strong growth, especially as we expand into new markets.”

“We have worked with this management team since our initial investment in 2005 and are proud of the growth Catalyst has achieved,” said Tyler Newton, a partner at Catalyst Investors and former Catalyst board member. “Management’s vision and the company’s capabilities will enable it to continue to attract enterprises and law firms worldwide who are looking for an e-discovery solution with speed, scalability and features that attack complex legal issues.” Catalyst Investors is selling the majority of its ownership in Catalyst in conjunction with this transaction.

Moelis & Company acted as exclusive financial advisor to Catalyst and its shareholders.

Monday, April 09, 2012

TransPerfect Acquires Counselor Resource Group

NEW YORK & WASHINGTON, DC, April 6, 2012 – TransPerfect Legal Solutions (TLS), a leading global provider of legal support services, today announced the acquisition of Washington DC-based Counselor Resource Group, LLC (CRG).

Founded in 2003, CRG is an industry leader in litigation support and electronic discovery with a core focus on proactive and reactive e-discovery consulting and service-based solutions, including digital forensics, data processing, document hosting, and project management for law firms, corporations, and government agencies.

CRG will become a division of TransPerfect Legal Solutions, and managing partner Jeff Tapp will assume the role of division president and join TransPerfect’s senior management team along with CRG co-founders and managing partners Greg Evans and Kevin Reed.

“We’re very happy to be joining the TransPerfect team,” said Jeff Tapp of CRG. “We feel that our services and core competencies complement TransPerfect’s existing suite of services nicely and that our clients will benefit from the expanded resources and global reach TransPerfect offers.”

According to TransPerfect Co-CEO Liz Elting, “CRG is a fantastic addition to the TransPerfect family. They are experts in the e-discovery field and have a sterling reputation within the legal support industry.”

Monday, April 02, 2012

eDiscovery Industry Investor Review by VRA Partners, LLC

VRA Partners, LLC published its electronic discovery industry investor review last week. The report provides details about the topics & trends in the eDiscovery industry: M&A, Private Equity and Public Markets; along with a list of relevant M&A transactions in the sector (listing target and acquiring companies). Below are a few excerpts.

Introduction
The electronic data discovery (“EDD”) market, a subset of the larger litigation support and legal sector markets, has seen dramatic change over the past 10 years and even more dramatic change within the last 5 years. The market, which was not in existence all that long ago, is estimated by some experts to be over $3 billion and is expected to grow considerably over the next few years with some estimates at over 30% annually.

Among EDD vendors, evolution has been rapid. The dominant names and players of the mid 2000s are in many cases gone, seriously wounded or now part of larger entities as a result of acquisition or merger. New market entries have consistently emerged, with some having subsequently disappeared, over this time frame. Most of the prevalent software companies in recent years were not even in existence in the early 2000s.

Most service providers today don’t own the technology they use to provide service. For the majority of EDD service providers, the emphasis has shifted from developing or accessing proprietary technology to building workflows, developing middleware and providing technology and litigation expertise in order to utilize today’s commercially available technology in an efficient and seamless process.

Buyers of EDD services and technologies are becoming more sophisticated and knowledgeable both at the corporate and law firm level and therefore simply gaining access to technology is no longer the primary factor in the buying decision.

The net effect of this considerable change in the EDD sector is a more stable, predictable and sophisticated overall market. It is a more attractive market for investment and consolidation than it was a few years ago with efficiencies of scale likely to gain increased importance over time.

Continue reading the 2012 report here: eDiscovery Industry Report.

Also worth noting:
eDiscovery Daily Blog posted a nice overview of the study, summarizing some interesting facts about the eDiscovery market size and industry growth.

Follow this link for an overview VRA's 2009 report titled Legal Support Industry - Investor Report.

Thursday, March 29, 2012

RVM Acquires e-Discovery Consulting Firm EDiscover-E

New York, NY — March 28, 2012 RVM, a leading provider of litigation support and corporate solutions, announces its acquisition of litigation consulting firm, EDiscover-E. This acquisition will enhance RVM’s growing suite of electronic discovery services, adding a best practice section concentrating on corporate litigation readiness, e-Discovery response process, and individual case management.

EDiscover-e, an electronic discovery consulting firm based in Columbus, Ohio concentrates on in-depth analysis of corporate and law firm e-Discovery current processes and procedures. EDiscover-e specializes in understanding the corporate culture and creating defensible, repeatable internal processes geared toward minimizing the risk and reducing the cost associated with electronic discovery.

“We are excited about the combined talent of RVM and EDiscover-e Inc. within the professional services offering,” states Vinnie Brunetti, President and CEO. RVM has increased the level of expertise in an area that our clients find the most challenging. There is a demand for seasoned professionals to help corporations address the daunting tasks of scoping for litigation hold, preservation and collection caused by the ever increasing amount of data sources as technology continues to evolve.

We understand the demands made on General Counsel and IT to get costs under control. However, with the voluminous amounts of data on devices, these types of tasks outpace the allocated or internal resources that many corporations have available to tackle these projects. “With the combination of RVM and EDiscover-e’s e-Discovery professionals, we excel in assisting corporations through all phases of these processes,” states Vinnie Brunetti.

Now, with the infusion of EDiscover-e, RVM has augmented both its expertise, and the scope of its Mid-West presence, specifically in Columbus, OH, Cincinnati, OH, Pittsburgh, PA, and Indianapolis, IN.

“The combination of RVM’s forensic collection and processing expertise, best of breed analytical and review tools with the experienced consultants of EDiscover-e will enable RVM to deliver services customized at the client matter level. This combination will allow solutions, tailored to the dynamics of a specific organization, its people, processes and technologies. Our process involves analyzing those internal factors and how to leverage them for mitigating risks, improving efficiencies and reducing e-Discovery costs,” added David Porter, Senior e-Discovery Consultant for RVM, formerly Managing Partner, EDiscover-e.

As best-in-class providers RVM and EDiscover-e continually strive to enhance their offerings to meet the dynamic needs of their clients. By joining forces, two best-in-class providers just got better.

Thursday, March 15, 2012

D4 Acquires Detroit Legal Imaging

ROCHESTER, NY and DETROIT, MI – March 15, 2012 – D4, LLC, a national leader in litigation support and e-discovery services to law firms and corporate law departments, today announced its further expansion in Michigan with the acquisition of Detroit Legal Imaging in Detroit. D4 will serve law firms and corporate clients in the Detroit Metro area and throughout Michigan from its office in Grand Rapids and this new office in Detroit.

“We have experienced a tremendous need for D4’s unique e-discovery and litigation capabilities throughout the U.S.,” said John Holland, CEO and founder, D4. “The addition of one of Michigan’s flagship companies, Detroit Legal Imaging, known for its consultative approach and long-standing relationships in its market, will enhance our presence in the region and enable us to deliver on our vision of providing a comprehensive suite of litigation support solutions to clients everywhere.”

With this acquisition, D4 is expanding its offerings in Michigan, while investing in and growing the practice that Troy Richard and his team have created. Detroit Legal Imaging is well regarded for delivering customized litigation support, e-discovery and document management solutions that utilize expert resources and forward-thinking technology. Becoming a part of the D4 family strengthens the company’s ability to better serve law firm and corporate clients in Michigan, while expanding D4’s national footprint to support local and national sales and service delivery efforts.

“For over 20 years, Detroit Legal Imaging has served Detroit and the region and we are excited to grow with D4,” said Troy Richard, managing director, D4 Detroit. “We believe our clients will immediately benefit from having direct access to the resources and expertise of a larger, national company.” Richard will continue to lead initiatives to support and advise customers in the region from the Detroit office.

Detroit Legal Imaging specializes in document imaging, electronic discovery, photocopying and litigation presentation materials and has consistently adapted its offerings based on the evolving needs of the Detroit legal community, while maintaining a strong presence in the state’s legal community.

Thursday, March 08, 2012

Ivize and Modus Announce Merger

Washington, DC and Atlanta, GA -- March 07, 2012

Modus, LLC, an industry-leading provider of electronic discovery services and Ivize Services, Inc., a national litigation support organization recognized for excellent service, announce the companies have merged. By combining Modus’ electronic discovery expertise and Ivize’s national presence, the merged company will provide world-class, end-to-end litigation support across the country. Modus and Ivize are positioned to effectively manage the evolving litigation support needs of corporate legal departments and law firms worldwide.

Abtin Buergari, the founder and CEO of Modus, will become CEO of the combined organization. Under the leadership of Rick Hutchinson as COO, Mark Marmon as CFO, and Evan Craghead as CTO, Modus and Ivize are poised for rapid growth.

“By combining operations and discovery solutions, Ivize and Modus will become stronger in both client-facing and delivery capabilities, becoming more valuable to all of our existing and new clients,” says Abtin Buergari. “Together we can now offer clients the most comprehensive and technologically advanced solutions in the litigation support industry.”

According to Mark Marmon, “The merger will create a platform of services focused on cost-efficient processes through cutting-edge technology and unsurpassed service.”

Modus and Ivize will employ 200 litigation support professionals in 13 markets around the U.S. Both companies will retain their original names.

About Modus, LLC

Headquartered in Washington, D.C., Modus provides law firms, corporations, and government entities industry-leading technology solutions encompassing all phases of the litigation lifecycle. Founded in 2008, Modus is a client-focused, results-driven team of consultants, project managers, data engineers and developers whose combined knowledge of the legal industry and information systems provide an incomparable ability to design solutions tailored to meet the uniqueness of every case.

About Ivize Services, Inc.

Headquartered in Atlanta, GA, Ivize is a national litigation support and discovery management company. Founded in 1995, Ivize currently operates 10 locations throughout the Midwest and Southeast including a national data center in Kansas City, MO. It services law firms, corporations, and government entities to prepare for and respond to their most critical discovery and litigation needs while committing to the highest defensibility, quality, and cost-efficiency standards.

Wednesday, February 08, 2012

Guidance Software to Acquire CaseCentral

PASADENA, California. – Feb 7, 2012 – Guidance Software, Inc. (NASDAQ: GUID) today announced it has signed a definitive agreement to acquire privately-held CaseCentral, Inc., a leader in the electronic discovery (e-discovery) market for Cloud-based review and production software.

“The acquisition of CaseCentral will bring together the industry leaders for both on-premise and Cloud-based e-discovery software. We will deliver the best of both worlds to customers by offering the most complete, integrated and innovative software in the e-discovery market,” said Victor Limongelli, president and chief executive officer of Guidance Software. “The combined organization will be the largest pure-play e-discovery software company, with nearly 500 total employees, and thousands of users.”

This acquisition will extend Guidance Software’s market leadership by delivering a complete e-discovery platform addressing the e-discovery needs of corporations and government agencies. The combined product portfolio will deliver to customers increased efficiency and automation, as well as lower risk for e-discovery activities. The integrated solution will span from legal hold to identification, collection, preservation, processing, first pass review, and, now with CaseCentral’s market leading software-as-a-service (SaaS) offering, best-in-class early case assessment (ECA), review and production capabilities.

The combined offering deploys software intelligently, with EnCase eDiscovery delivering the legal hold, identification, collection, preservation, and processing functions on-premise, at the customer site – close to the sources of data and the data custodians – and CaseCentral delivering the ECA, review and production functions as SaaS in the Cloud, so that geographically dispersed inside and outside counsel can efficiently review collected documents without needing any special equipment or software other than a web browser and internet connectivity.

The integration of EnCase eDiscovery with CaseCentral will quickly provide additional value to customers, scaling from support for single-case requirements to multi-case, multi-party requirements. Further, the unique EnCase eDiscovery Collected Data Reuse capabilities, coupled with the unique CaseCentral centralized, multi-matter legal repository provide immediate benefit to customers by automating searches, reducing over-collection of ESI, lowering spoliation risk, re-using attorney work product where appropriate, and avoiding inadvertent production of confidential or privileged client data. See http://www.encase.com/only-with-encase.htm for more information on Collected Data Reuse and http://www.casecentral.com/enterprise.php for more information on multi-matter capabilities. These capabilities, among others, help customers to standardize e-discovery processes and drive down the risk, time and cost of e-discovery.

“CaseCentral has pioneered many significant e-discovery industry developments, including the delivery of e-discovery software via the Cloud and a centralized legal repository with multi-matter, multi-party and re-use capability,” said Chris Kruse, founder, president and chief executive officer of CaseCentral. “We are excited about joining forces with Guidance Software, as we will be well positioned to capitalize on the market’s tremendous potential and define the next generation of e-discovery solutions, benefitting both Guidance and CaseCentral customers, partners and employees.”

Under the terms of the agreement, Guidance Software will acquire CaseCentral for upfront consideration of approximately $17.1 million, consisting of $8.3 million in cash, $8.3 million in Guidance Software common stock, and the assumption of $0.5 million of debt, net of cash. Depending on CaseCentral’s SaaS revenue growth, Guidance Software may pay up to an additional $33 million in cash over the next three years. The transaction is subject to customary closing conditions and is expected to close during the first quarter of 2012. Guidance Software expects the transaction to add approximately $10 million in SaaS revenue in 2012, and to be slightly dilutive to slightly accretive to 2012 non-GAAP EPS and accretive to 2013 non-GAAP EPS.

Atlas Technology Group acted as financial advisor to Guidance Software in this transaction.

Thursday, February 02, 2012

HSSK Forensics Announces the Closing of the Sale to Ricoh Americas, Inc.

Houston, TX -- February 02, 2012

Hill Schwartz Spilker Keller LLC, a leading professional services firm devoted to Business Valuation and Litigation Consulting, announced on Monday that a definitive agreement has been signed to sell HSSK Forensics, Inc., a state-of-the-art computer forensics and electronic discovery provider to Ricoh Americas, Inc. Ricoh will gain HSSK Forensics’ RemloxTM Remote Acquisition technology and the HSSK Forensics lab in Houston, TX, the first private computer forensics lab accredited by the American Society of Crime Laboratory Directors/Laboratory Accreditation Board (ASCLD/LAB).

“As a part of HSSK LLC, HSSK Forensics, Inc. developed and commercialized the Remlox remote acquisition technology as well as other technologies to improve the speed and efficiency of acquiring and processing electronically stored information," said Mike Hill, Sr., President of HSSK LLC. Computer forensics grew from HSSK LLC's regular financial forensics practice and eventually became an affiliated entity known as HSSK Forensics, Inc. HSSK, LLC continues to practice financial forensics today, and HSSK LLC has always valued the added advantage of technology in order to deliver better valuation, litigation, and financial forensics services.

Ricoh will integrate Remlox and the HSSK Forensics lab as part of Ricoh’s eDiscovery suite of services, expanding its technology and service offering in computer forensics and eDiscovery for corporate counsel and supporting law firms, providing a complete solution for the identification, collection, verification, logging and analysis of electronic data. The agreement also brings the experience of HSSK Forensic’s management team and employees to Ricoh, including years of testifying experience. David Greetham, HSSK Forensics’ Managing Director of the Computer Forensics & E-Discovery Group, will become National Director of Forensic Services.

As with HSSK Forensics, HSSK employs some of the most experienced and knowledgeable professionals in business valuation. Its management team includes two of only fourteen business valuation Fellows of the American Society of Appraisers. Its bankruptcy and financial forensics practices are led by two individuals with over fifty years of combined courtroom experience. HSSK assists clients in quantifying and articulating value for financial reporting, taxation, transaction, and corporate planning purposes. It also works with clients involved in filed and pending litigation and disputes by providing valuation services, financial forensics, financial damage determination, and bankruptcy related services, including serving as financial advisors to parties, as trustees and as examiners.

HSSK LLC continues to offer industry-leading services in business valuation, litigation consulting, and financial forensics to the corporate, legal, and professional communities. The sale of HSSK Forensics, Inc. as a valuable technological asset is an example of the ingenuity and innovation used throughout all of HSSK's services and offerings in order to deliver best-in-class solutions to its distinguished portfolio of Fortune 500 clients.

Saturday, January 21, 2012

Document Solutions Inc. Merges with Knoxville Document Pros

Consolidation in the document management industry continues as two businesses with operations in Knoxville have announced a merger.

Document Solutions Inc., headquartered in Nashville with offices in Knoxville and Cincinnati, is merging with Knoxville Document Pros.

The companies will operate under the Document Solutions banner. Terms of the merger were not disclosed.

Document Solutions has carved out a niche in providing electronic discovery, digital forensics, data recovery and traditional document services for the legal industry. The company was founded in Nashville in 1999 and opened its Knoxville office in September 2007.

Document Solutions' announcement follows the launch last year of several initiatives, including the Smart Sampling Process, Intake Program, ESI Managed Services and the DSI Remote Discovery Platform.

Knoxville Document Pros began in 1998 and is owned by Eric Rose. It began with most of its clients being law firms. It has specialized in scanning, copying and imaging services. The company has grown by following the burgeoning e-discovery field.

Document Solutions said under the auspices of a single umbrella the company expects to leverage the two companies' capabilities to continue growing and adapting to the evolving document management market.

Document Solutions' Knoxville partner and co-owner Jeff Stoneking cited Document Pros' strong reputation and customer base as compelling reasons for the merger.

"It's great news for DSi's East Tennessee clients that one of our outstanding competitors has become an outstanding partner," Stoneking said, "Eric has been in the litigation support industry for over 20 years, he's run multiple businesses, from photocopying to e-discovery, and he's had a lot of success with it. Most importantly, he shares DSi's commitment to uncompromised customer service."

Document Solutions' co-founder and Chief Financial Officer Kevin Tyner said the merger is part of his company's larger commitment to expanding its reach and scope in the e-discovery industry.

"Our Knoxville location has been a critical part of our success in East Tennessee and the greater Southeast, and the established track record of top-quality services that Eric and Knoxville Document Pros bring to DSi will make our company even stronger there," Tyner said in a statement.

Rose said East Tennessee corporations, small businesses, engineering firms and law firms will have access to advanced proprietary technology with the merger.

"Our clients will benefit immediately from DSi's incredibly innovative, cutting-edge services in e-discovery and digital forensics," Rose said.

After the merger, DSi Knoxville will have 12 employees and five owners. Rose and three former Knoxville Document Pros employees vacated their former office on Gay Street to move into the DSi space in First Tennessee Plaza, 800 S. Gay St.

Thursday, January 19, 2012

Cinven takes out Intermediate Capital Group to Acquire CPA Global

On February 08, 2010 we reported that Intermediate Capital Group had acquired a significant stake in CPA Global. Now the European private equity firm Cinven, which is headquartered in London, has purchased intellectual property (IP) management business CPA Global.
 


While financial details for the deal are undisclosed the transaction comes two years after Intermediate Capital Group acquired a minority stake in the company for £400 million. 
 


As part of the 2010 deal ICG took a 47 per cent stake while the management team, led by chief executive Peter Sewell, retained a 22 per cent share.
 


CPA Global provides clients in sectors such as telecoms and pharmaceuticals with IP management services and software to help protect rights and maintain value.
 


Stuart McAlpine, partner at Cinven, comments: 'CPA Global is an exciting primary opportunity to invest in a global leader in a market with defensive qualities and attractive growth prospects.


'The business has achieved an exceptional financial performance and is highly cash generative.'
 


McAlpine says that the acquired business fits with Cinven's strategy of investing in companies where it can accelerate its global presence using Cinven's sector expertise and Asian portfolio capacity.


According to Cinven, the volume of patents granted worldwide has increased by 5 per cent annually and has significant growth projected in China and other Asian economies.


Data from Thomson Reuters shows that China surpassed both the US and Japan for the total number of patents filed in 2011.


Sewell adds: 'Companies around the world are increasingly recognising the value of IP.


'In recent years, we have seen how the patent renewal market and protection of clients' IP remain business critical throughout the economic cycle.'

Litigation Support Market 2012 Predictions

Greater Competition, Technology-based Offerings and Regulatory Amendments seen as factors altering the 2012 Litigation Support Outsourcing Market, reports legal management consultancy Fronterion LLC

As reported on the CPA Global website "LSO’s expansion into new legal disciplines next year will take place against the backdrop of a tougher contest for clients’ hearts and minds, says forecast"

Changes will sweep through the legal services outsourcing (LSO) sector in 2012 as competition for potential clients heats up, according to legal management consultancy Fronterion LLC. In its annual overview of LSO (also known as legal process outsourcing, or LPO) the organisation highlights a move towards technology-based offerings; an evolution beyond litigation support; and forthcoming regulatory amendments as factors that will alter the sector’s landscape. Meanwhile, clients will seek to work around law firms and work directly with providers, even as those law firms attempt to integrate providers straight into their services: two trends that will make for a more vibrantly competitive industry.

In its 10 for 2012 paper, which follows up on forecasts published for 2010 and 2011, Fronterion also suggests that multishoring – previously covered on NewLegal Review – will continue to define the shape of LSO, as clients seek to allocate legal tasks between onshore and offshore models in ways that would produce the maximum savings and efficiency.

That trend, in Fronterion’s view, is likely to govern the overall direction of LSO in the next 12 months.

A technological future

As the multishore approach becomes more prevalent there will be a noticeable passing of the old order, which will see litigation-support functions that formed the bedrock of LSO in its earlier days giving way to newer and more technical services. The paper provides several reasons for this outlook. In the main, it says, a sector-wide dependency on litigation support is unsustainable at a time when commoditisation of the legal tasks involved has begun to stagnate. Furthermore, the business of executing of those tasks could be leaving the remit of flesh-and-blood employees entirely: in the long term, Fronterion says, ‘certain manual LSO services may become automated or eliminated altogether by computer programs that cost less than even the cheapest worker’.

With that in mind, the paper predicts, bundled LSO services and technology offerings ‘will be an essential differentiator for outsourcers in 2012’. Applications that providers may wish to offer include contract-management repositories; review platforms; and legal research tools that can trawl through thousands of documents for key themes and phrases. At the same time, providers will diversify their legal services into areas such as due diligence on mergers and acquisitions (M&A), as they aim to build from the traditional area of litigation support. ‘Expanding service adoption in 2012 will be an uphill battle,’ the paper stresses, ‘but worth the effort.’ The key focus for providers must be to set out a ‘progressive value proposition’ for clients.

‘Supreme validation’


LSO’s growing profile in the wider legal sector has captured the imaginations of law firms – to the extent that, next year, imitation is likely to be the sincerest form of flattery. In Fronterion’s forecast, LSO-style approaches to legal business are going to be replicated by traditional firms, who will implement detailed process management, regular reporting and scalable, transparent services in order to win over clients. This will be the strongest sign yet from law firms that they recognise how outsourcing providers have changed delivery expectations among corporate legal departments and redefined perceptions of value – a watershed that the paper calls ‘a supreme validation of the LSO approach.’

Other law firms, says the forecast, will choose to include workflow from LSO companies on key tasks in their initial pitches to prospective clients – a pre-emptive measure that, again, acknowledges that LSO techniques will naturally be sought after by in-house lawyers from the word ‘Go’. As Fronterion notes, ‘this represents a major milestone for the industry and expands opportunities for growth.’

However, the development could just as easily become a wellspring for intensified competition: law firms pushing for early integration of LSO companies will jostle for position with clients opting to make direct contact. In this climate, success will be determined by which provider will win which chunk of legal work from which corporate client – ideal preconditions for a hotly contested market, in which the relationship between providers, law firms and clients will be transformed.

Appropriately, then, it will fall to regulators in the US and UK to determine how that relationship should be managed. The American Bar Association is already scheduled to publish recommendations for reworked LSO professional guidelines in August. Fronterion also considers it likely that, in the UK, the Solicitors Regulation Authority (SRA) will be called upon to offer similar ideas as the full implementation of the 2007 Legal Services Act continues to unroll – a subject that NewLegal Review has covered in detail very recently.

In the forecast’s vision for 2012, LSO’s high profile in the legal sector will continue – along with its facility for sparking debate on how legal services should be offered even further into the future.

Fronterion’s predictions for 2012

1. A profitability squeeze for LSO
Shrinkage in the wages gap between developed and developing economies will take a toll on profit margins in the sector.

2. A growth beyond litigation support
Contract management, due diligence and mergers and acquisitions (M&A) functions will become more prominent in the LSO sector as it strives to be more sustainable.

3. Technology to combine with LSO
Innovative software offerings to assist clients’ legal-management capabilities will become an essential market differentiator for service providers.

4. Wider adoption of LSO techniques
Law firms and legal professionals of all kinds will increasingly use LSO-style project-management methods in their approaches to process and reporting

5. Law firm insurers to target LSO
Perceived risks stemming from an increased usage of legal outsourcing services will be cited in marketing campaigns by insurance firms.

6. Changes in the executive ranks
A focus on more operationally minded leadership, in which executives will focus on efficiency and profitability, will cause a shift from the entrepreneurial ethic that has so far dominated the helms of major LSO providers.

7. LSO to face stiffer competition
Law firms will pre-emptively include LSO providers in their offerings to meet growing client expectations for lower-cost services, leading to a proliferation of LSO usage. As such, competition will be busier, and more varied.

8. A ‘winner-takes-all’ sector
The economic climate likely to prevail in 2012 will make it harder for new, stand-alone LSO vendors to attract the capital necessary to compete with the sector’s largest players. This will benefit the established hierarchy.

9. Changing professional guidelines
Forthcoming results of LSO studies conducted by US and UK regulatory authorities will clarify dos and don’ts for the sector’s practitioners.

10. Evolution of the law firm-client relationship
Whereas the typical triumvirate relationship has seen law firms engage LSO providers on behalf of in-house legal departments, 2012 will increasingly see those departments hiring LSO providers directly.

Monday, January 16, 2012

Symantec Buys LiveOffice for $115M

Symantec has acquired email archiving specialist LiveOffice for $115 million, and intends to use that software to put e-discovery applications in the cloud, officials said today.

The pairing had long been rumored, as the companies have a history together. Symantec began reselling LiveOffice's technology in 2010, later rebranding it as Enterprise Vault.cloud, while LiveOffice CEO Nick Mehta and Vice President of Sales and Business Development Jim O'Hara both previously worked at Symantec.

Symantec bought another email specialist, MessageLabs, for $695 million in 2008. But that deal was more focused on security products. The current deal is unique because of LiveOffice's focus on e-discovery, which can be used with Symantec's Clearwell Systems subsidiary acquired for $390 million last year.

"Over time it will be a platform for a hosted Clearwell, which will be really interesting," said Symantec's Brian Dye, vice president, information intelligence group, in Mountain View, Calif. However, "Whether we can get it done this year is not clear," he acknowledged.

Many e-discovery service providers already sell the eponymous Clearwell E-Discovery Platform on a hosted basis, but Symantec's integration would be deeper because of proprietary technology that shares data between the applications, Dye said. The software will share metadata about a file's access and history, and will allow users to eliminate irrelevant data, rather than simply acting as a bit mover, he noted.

That plan, for what's known as connector software, is similar to what Symantec previously offered through a partnership with Austin, Texas-based StoredIQ. That partnership ended when the Clearwell deal happened because the companies compete. Meanwhile, Symantec will continue selling its own connector product, Discovery Accelerator, to other e-discovery companies, Dye added.

Monday, January 09, 2012

Siris Capital Buys Applied Discovery (ADI)

LexisNexis has sold its Applied Discovery division to equity firm Siris Capital, the companies said Friday, clearing the way for Lexis' Concordance Evolution to be a flagship e-discovery product.

Lexis acquired Applied, one of the early leaders in e-discovery, for a reported $95 million in 2003. But there were clashing corporate cultures over the years, including as recently as last year, when Lexis and Applied chose competing partners for predictive coding technology. Lexis also invested in Concordance until the review software had features overlapping Applied's Discovery Leverage, contributing to Applied becoming expendable, sources said.

Terms of the sale to Siris, in New York, were not disclosed, and Siris did not comment by press time. The deal is Siris' second in three months, having acquired cellular equipment specialist Tekelec in November for $780 million.

However, "Siris [has] a proven record in stabilizing and growing their acquisitions with infusions of talent, vision and capital -- for organic growth as well as for growth via acquisitions," Lexis and Applied said in a joint statement. "[C]urrent work plans remain in place. The organization will also move forward to offer customers more flexibility, third party tools and an increased focus on managed review services."

Bellevue, Wash.-based Applied also has a new CEO -- Ramana Venkata, who replaced Ira Herman, company spokeswoman Lindsay Perrault said. Venkata founded e-discovery company Stratify in 1999 and remained through its $158 million acquisiton by Iron Mountain in 2007. He left in 2010, and the Stratify unit was later sold to Autonomy for $380 million.

Monday, January 02, 2012

eDiscovery Company Epiq Systems Acquires De Novo Legal

Kansas City, KS (December 28, 2011) – Epiq Systems, Inc. (NASDAQ:EPIQ), a leading global provider of technology solutions for the legal profession, today announced the acquisition of De Novo Legal LLC, a significant U.S. e-discovery provider with particular prominence in managed review services. Epiq paid closing consideration of approximately $68 million which was funded from the company’s credit facility. The transaction also includes a deferred cash component and an opportunity for contingent consideration based on future revenue growth.

With this transaction, Epiq further strengthens its leading global e-discovery franchise, providing corporate legal departments and law firms with full-service capabilities to manage electronic information for discovery, investigations, regulatory issues, compliance, and related legal matters.

De Novo augments Epiq’s capacity for managed review services and broadens Epiq’s e-discovery customer base. De Novo has document review centers in key strategic locations in the United States and is among the largest providers of managed review and staffing services. De Novo also offers clients e-discovery processing and hosted review platforms. For 2011 on a pro forma basis, De Novo represents an approximate 30% to 40% revenue increase to Epiq’s projected standalone e-discovery segment.

Epiq originally introduced an organically developed service extension for managed review in 2009, which has grown consistently since its inception. This acquisition positions Epiq to offer unrivaled throughput and responsiveness to customers from multiple domestic and overseas locations.

Significant subject matter expertise combined with scale, reach and capacity are important attributes of Epiq’s worldwide e-discovery business and constitute key competitive differentiations. Whether for individual complex engagements or for continuing relationships with multinational corporations or global law firms, the availability of end-to-end services and choice of multiple technologies positions Epiq in the top bracket of market participants. The company has full-service e-discovery operations in New York and Phoenix domestically, and London and Hong Kong internationally.

Kenyon Group, Inc. acted as financial advisor to De Novo Legal and arranged the transaction.