Migrated from eDJGroupInc.com. Author: Greg Buckles. Published: 2015-10-07 20:00:00Format, images and links may no longer function correctly.
With the announcement of Roper Industries acquisition of practice management software provider Aderant for $675M, my rough tally of publicly disclosed investments in the eDiscovery/Info Gov market space hit $2.2B with a billion this week. Rob Robinson keeps a good chronological list of M&A activity here. A couple interesting notes for your consideration. 2014 had 34 announcements, but only quantified roughly $92M in press releases. I know that unquantified acquisitions of familiar private players such as Applied Discovery, TeamConnect and Falcon Discovery represent several times that total, but 2015’s higher rate of disclosure demonstrates more mature, outside investment in our market. We all discount HP’s 2011 $11B Autonomy acquisition as an aberration in the market, but 2015 shows that eDiscovery is slowly integrating into the global enterprise technology/services market space. Although Aderant does not publish their revenue, Roper’s bullish projection of $125M in 2016 revenue for Aderant leads me to ballpark their 2015 revenue around $100M. That give this deal a 6-7x multiple, which beats most deals that I analyzed in 2014. Nice to see the multiples creep back up and enough M&A to justify the $15B+ market estimates batted around between the ivory tower analyst shops. Also glad that Mikki and I have been working on our 2015 practice and matter management market categories for several new clients.
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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With the announcement of Roper Industries acquisition of practice management software provider Aderant for $675M, my rough tally of publicly disclosed investments in the eDiscovery/Info Gov market space hit $2.2B with a billion this week. Rob Robinson keeps a good chronological list of M&A activity here. A couple interesting notes for your consideration. 2014 had 34 announcements, but only quantified roughly $92M in press releases. I know that unquantified acquisitions of familiar private players such as Applied Discovery, TeamConnect and Falcon Discovery represent several times that total, but 2015’s higher rate of disclosure demonstrates more mature, outside investment in our market. We all discount HP’s 2011 $11B Autonomy acquisition as an aberration in the market, but 2015 shows that eDiscovery is slowly integrating into the global enterprise technology/services market space. Although Aderant does not publish their revenue, Roper’s bullish projection of $125M in 2016 revenue for Aderant leads me to ballpark their 2015 revenue around $100M. That give this deal a 6-7x multiple, which beats most deals that I analyzed in 2014. Nice to see the multiples creep back up and enough M&A to justify the $15B+ market estimates batted around between the ivory tower analyst shops.