Epiq Systems and DTI will merge as part of a $1 billion deal funded by OMERS Private Equity and Harvest Partners LP. Epiq and DTI both specialize in eDiscovery for the legal vertical, while offering a blend of managed services and legal process outsourcing (LPO) capabilities.
Under terms of the deal, OMERS and Harvest essentially are acquiring Epiq at $16.50 a share, and then merging the business with DTI. The deal is expected to close in Q4 2016.
Epiq had spent the past 22 months undergoing a "strategic review" -- which essentially means the company's board has spent nearly two years shopping the business to potential suitors.
Earlier this year, there were unconfirmed reports that DTI and Xerox had made offers to buy Epiq for between $14 and $16 a share, and there were claims that Epiq had turned down another offer at $20 a share, according to the Kansas City Star. More recently, Epiq said it had received no “viable” offer at $20 a share, the Star reported.
Legal Vertical Expertise
Eric Haley, managing director of OMERS Private Equity, said, “Epiq and DTI are both recognized as excellent service providers and market innovators. This combination will produce a global firm with best-in-class solutions and significant opportunities for growth in the dynamic legal technology industry.”
eDiscovery Mergers and Acquisitions
The eDiscovery industry has been ripe for mergers and acquisitions over the past year. Other recent deals worth noting, according to Bloomberg Law, include:
- In January 2016, the Carlyle Group and venture capital firm Revolution Growth acquired Virginia-based LDiscovery for a reported $150 million.
- In December 2015, Consilio acquired Huron Legal for $112 million, its third deal after the Los Angeles private equity firm Shamrock Capital Advisors purchased a majority stake in August.
- In December 2015, the patent risk management company RPX purchased Inventus Solutions in a $232 million deal.
