HaystackID, a Washington, D.C., company that specializes in eDiscovery services for corporations, has acquired eTERA Consulting (also of Washington, D.C.). This is the buyer's third acquisition after Knox Capital recapitalized the business in 2017.
HaystackID's eDiscovery services help corporations and law firms find, listen, and learn from data during an investigation or litigation process, the company says. eTERA brings offers managed eDiscovery services to corporate legal departments and governmental agencies worldwide.
The eTERA senior management team and all of its employees will join HaystackID. eTera President and Founder Scott Holec shifts to HaystackID’s Chief Operating Officer role. Combined headcount figures post-deal were not disclosed.
HaystackID: Talent, Executive Leadership Perspectives
As part of the deal, senior leadership teams of both organizations have reinvested in the company alongside Knox Capital, ORIX Mezzanine & Private Equity, Maranon Capital, and Baird Principal Group.
Explaining the deal's value, Haystack D CEO Hal Brooks said:
“eTERA brings proven expertise delivering managed eDiscovery services to corporate legal departments and governmental agencies throughout the world. Their addition will immediately enhance our Forensics First, Early Case Insight, and ReviewRight portfolio of services and help optimize the delivery of those services for long-term, subscription and contracted engagements."
Added Holec:
“HaystackID’s data expertise, informed by their sterling reputation for forensics, discovery, and innovative managed review powered by ReviewRight, is highly complementary to our service portfolio and immediately additive to our ability to serve our global customer base. More importantly, both companies have an unwavering client service focus which promotes the right cultural fit across our respective employee and customer bases.”
HayStackID has M&A experience. The company in 2018 acquired Inspired Review and Envision Discovery.
Mergers and Acquisitions: Legal IT Services, eDiscovery Consulting
Legal IT services remains a hot sector within the broader managed IT services market. Market watchers like Continuum CEO Michael George believe the legal IT services sector and other prime MSP verticals will consolidate around a few, large dominant players.
Among those making acquisitions or inking deals in the legal IT services market:
- January 2019: Trustpoint One acquired Kelly Legal Managed Services.
- September 2018: Hilltop Consultants, a Top 100 Vertical Market MSP, acquired LANsultants
- August 2018: EY bought Riverview Law
- August 2018: Netgain Technology purchased Afinety Inc.
- Augustu 2017: Alphaserve Technologies partnered with Cornerstone Information Technologies
