Merger activity continues in the US electronic evidence market.
EPIQ Systems, “a national leader in the market for fiduciary management and claims administration systems and provides an advanced offering of integrated technology-based products and services,” has acquired nMatrix, a “a leading provider of case management and document management products and services for electronic discovery and litigation support” according to an EPIQ press release. The acquisition is for $125 million ($100m cash and $25m stock); nMatrix’s projected operating revenue for its fiscal year ending December 31, 2005 is approximately $20 million, more than double the revenue for its fiscal year ending December 31, 2004. Sounds like a pretty good multiple to me. (Spotted this news on Litigation support industry news and information.)
Many have and are predicting consolidation in the e-discovery market. I’ve been expecting a storage or information life cycle management company to acquire a pure-play e-discovery company. EPIQ and its business are new to me; it will be interesting to see what synergies emerge over time.