Migrated from eDJGroupInc.com. Author: Greg Buckles. Published: 2015-08-30 20:00:00Format, images and links may no longer function correctly.
More than 100 CaseTrack customers were essentially bought by Mitratech for an undisclosed price. These customers will have “a clear and straightforward path to upgrade to Mitratech’s award-winning enterprise legal and contracts management platforms, eCounsel, TeamConnect, and GettingContractsDone, as determined by each client’s individual needs and preferences” according to the press release. In just a couple of months, Mitratech has shrunk the case management market space and by my calculations has grown their client base from just over 300 to 750 – a 250% jump in 2 months when you include the Bridgeway acquisition. My quick revenue searches found that Mitratech was estimated at roughly $50M, while unconfirmed estimates report Bridgeway was $10-25M and EAG (CaseTrack) was $5-10M. I have to commend the Mitratech management team for not playing coy with CaseTrack’s customers like they have with Bridgeway’s eCounsel’s customers. When you acquire competitive products, only one can survive in the long run. I never understood executives who pretended that they did not already know which product was slated for the dumpster before they decided on the acquisition multiple (cost). When you buy a company, you value it for a number of factors:
- IP (products and patents)
- Customer base (market share and revenue)
- Personnel
- Brand
The recent wave of eDiscovery market consolidation has been driven by the need to buy up the top enterprise customers, to own the Fortune 500 at the top of the eDiscovery iceberg. I would love to know the multiples on the Bridgeway/EAG acquisitions, but the bottom line is less choice for matter management RFPs going forward.
Greg Buckles wants your feedback, questions or project inquiries at Greg@eDJGroupInc.com. Contact him directly for a ‘Good Karma’ call. His active research topics include analytics, mobile device discovery, the discovery impact of the cloud, Microsoft’s Office 365/2013 eDiscovery Center and multi-matter discovery. Recent consulting engagements include managing preservation during enterprise migrations, legacy tape eliminations, retention enablement and many more.
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