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.

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