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.

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.