The e-discovery market is booming. A boom does not, however, guarantee success. According to a press release, big player Daticon has declared bankruptcy and been acquired. 

In the release dated Jan 17, 2006, acquiror Xiotech writes that “today it has reached agreement with Daticon Incorporated to purchase the assets of that company. Daticon is a Norwich-based litigation support and document conversion services company that filed for Chapter 11 bankruptcy today. Xiotech is pledging to keep Daticon’s operations based in Norwich, Conn. protecting the company’s 170 local jobs.” (Press release spotted at Litigation support industry news and information blog.)

Xiotech is a storage solution company. The release quotes industry analyst, Michael Clark of EDDix: “To capitalize on growing opportunities around EDD, existing e-discovery companies will need more expertise in data storage and management. Combining a company like Daticon with Xiotech brings together a lot of the right capabilities.” I agree with Clark and suspect that we will see further consolidation.