8/8/2011
The Dolan Company today announced that its subsidiary, DiscoverReady, had concluded a major strategic expansion in the area of electronic discovery with the purchase of some assets of ACT Litigation Services, which is based in Valencia, California.
The acquisition price was at $65 million with potential future payments depending on its performance. The deal was closed July 25.
ACT is among the oldest in the country and one of the thriving complex litigation automation firms. It specializes in making technology and process solutions available to clients that have electronic discovery needs. The firm brings with it the most efficient methods for speedy completion of projects, in a much better and economical way. Hosting and review services are also being provided by the firm.
Some of the services provided by DiscoverReady are first-pass document examination, managed services and data processing, as well as hosting to the e-discovery sector. The firm is a pioneer in fixed-fee document and automated review. In the year 2009, The Dolan Company acquired it. DiscoverReady, like ACT, services the legal requirements of big corporations and their legal counsels.
According to James P. Dolan, The Dolan Company’s president and chief executive, “Combining ACT and DiscoverReady solidifies our position in the top echelon of e-discovery providers, not just in talent, client base and capacity, but also in terms of quality and innovative solutions.” He said that the acquisition unites industry leaders in review, technology, and process development.
Dolan also said that the trailing 12-month revenues of ACT were around $30 million. The deal will be accretive immediately to cash earnings for every share. He also said that the transaction scales down the revenue concentration of the company by spreading its services across many clients.
