An Open Mind? Considering the OpenText Acquisition of Recommind - ComplexDiscovery Archived Content

The acquisition appears to be one that will provide OpenText with advanced analytics technology and expertise that can be used to expand the capabilities of its enterprise information management solutions (integration over time) and to immediately enhance its current offering portfolio (addition of Recommind offerings).


General Comments on the Recent OpenText Acquisition of Recommind Announcement 

The acquisition appears to be one that will provide OpenText with advanced analytics technology and expertise that can be used to expand the capabilities of its enterprise information management solutions (integration over time) and to immediately enhance its current offering portfolio (addition of Recommind offerings).

The purchase appears to be one achieved by OpenText at an economical price point as it is expected to generate up to $80M of annualized revenue at an acquisition cost of $163M. The purchase provides OpenText with:

1) Access to Recommind Analytics and SaaS Technology (Strategic Goal)
2) Access to Recommind Analytics and SaaS Expertise (Strategic Goal)
3) Access to Recommind Installed Base of Enterprise Clients (Tactical Benefit)

These ‘access’ points appear to be similar to the ones Microsoft targeted with its acquisition of Equivio in January of 2015 for approximately $200M.

If past actions are a predictor of future actions, it would appear that current Recommind offerings would at the very least begin to be branded as OpenText offerings (e.g. Daegis Acquisition, November 2015). Additionally, given the apparent strategic center-of-gravity of the acquisition (technology and expertise), the long-term viability of current Recommind product offerings probably will be dependent on performance in the marketplace. However, it appears reasonable to conclude that the assimilation of Recommind by OpenText as an action that will make it tough for Recommind as we know it today to continue as a dominant player in the data management and review space. This conclusion is based more on the attributes of acquisitions than any issue with Recommind technology or expertise.

With the increased market awareness and understanding of automation and machine learning coupled with the data-driven need for analytics technology and expertise, it seems reasonable that investments and acquisitions like this will continue to touch the area of eDiscovery. Publicly we see investments from the venture capital community in the field of eDiscovery automation (e.g. Logikcull, Everlaw, CS Disco). Anecdotally, many eDiscovery providers are investing in direct or indirect relationships with eDiscovery automation providers to allow for the delivery of solutions ranging from Technology-Assisted Review (task automation) to self-service, full eDiscovery platforms (process automation). This investment in automation, or said in a different way, investment in efficiency, is a trend that should continue given the challenges facing eDiscovery end users (e.g. budgetary constraints, increasing volumes of data, inadequate technology) and the business opportunity presented to those solving those challenges.

Additionally, It appears that the pace in which eDiscovery-related companies are making strategic investments and acquisitions to both expand their own technology capabilities and increase their revenue streams in the first six months of 2016 is similar to the same time frame in 2015. However, it does appear that recent activities by larger companies are weighted more toward increasing their access to technology and technology-related expertise than toward just acquiring access to installed bases and distribution networks. The OpenText acquisition of Recommind would seem to follow this trend.

Selected Additional Reading:

Have a Request?

If you have information or offering requests that you would like to ask us about, please let us know and we will make our response to you a priority.

ComplexDiscovery is an online publication that highlights cyber, data and legal discovery insight and intelligence ranging from original research to aggregated news for use by business, information technology, and legal professionals. The highly targeted publication seeks to increase the collective understanding of readers regarding cyber, data and legal discovery information and issues and to provide an objective resource for considering trends, technologies, and services related to electronically stored information.

ComplexDiscovery OÜ is a technology marketing firm providing strategic planning and tactical execution expertise in support of cyber, data and legal discovery organizations. Registered as a private limited company in the European Union country of Estonia, one of the most digitally advanced countries in the world, ComplexDiscovery OÜ operates virtually worldwide to deliver marketing consulting and services.

U.S. Department of Treasury Takes Actions to Counter Ransomware

According to Treasury Secretary Janet L. Yellen, “Ransomware and cyber-attacks are...

The NATO Cooperative Cyber Defence Centre of Excellence (CCDCOE): September 2021 Cyber Events Report

The twelfth installment in the cyber events series published by the...

[Legal Education Webcast] Breaches, Responses, and Challenges: Cybersecurity Essentials That Every Lawyer Should Know

Every large corporation and organization today face the significant threat of...

Classifying Ransomware? A Ransomware Classification Framework Based on File-Deletion and File-Encryption Attack Structures

This paper evaluates attack methodologies of a ransomware attack: the underlying...

Mitratech Acquires Alyne

According to Mike Williams, CEO of Mitratech, "The combination of Alyne...

Magnet Forensics Acquires DME Forensics

According to the announcement, under the terms of the agreement, Magnet...

Consilio to Acquire Legal Consulting and eDiscovery Business Units of Special Counsel from Adecco

According to Laurie Chamberlin, Head of Professional Recruitment and Solutions North...

Nuix Acquires Natural Language Processing Company

According to Nuix CEO Rod Vawdrey, “Topos will strengthen Nuix’s product...

A New Era in eDiscovery? Framing Market Growth Through the Lens of Six Eras

There are many excellent resources for considering chronological and historiographical approaches...

An eDiscovery Market Size Mashup: 2020-2025 Worldwide Software and Services Overview

While the Compound Annual Growth Rate (CAGR) for worldwide eDiscovery software...

Resetting the Baseline? eDiscovery Market Size Adjustments for 2020

An unanticipated pandemeconomic-driven retraction in eDiscovery spending during 2020 has resulted...

Home or Away? New eDiscovery Collection Market Sizing and Pricing Considerations

One of the key home (onsite) or away (remote) decisions that...

Five Great Reads on Cyber, Data, and Legal Discovery for September 2021

From countering ransomware to predictive coding and packaged services, the September...

Five Great Reads on Cyber, Data, and Legal Discovery for August 2021

From the interplay of digital forensics in eDiscovery to collecting online...

Five Great Reads on Cyber, Data, and Legal Discovery for July 2021

From considerations for cyber insurance and malware to eDiscovery business confidence...

Five Great Reads on eDiscovery for June 2021

From remediating cyberattacks to eDiscovery pricing, the June 2021 edition of...

More Keepers? Predictive Coding Technologies and Protocols Survey – Fall 2021 Results

From the most prevalent predictive coding platforms to the least commonly...

Glowing Expectations? Eighteen Observations on eDiscovery Business Confidence in the Summer of 2021

In the summer of 2021, 63.3% of survey respondents felt that...

Issues Impacting eDiscovery Business Performance: A Summer 2021 Overview

In the summer of 2021, 24.4% of respondents viewed increasing types...

Looking Up? eDiscovery Operational Metrics in the Summer of 2021

In the summer of 2021, 80 eDiscovery Business Confidence Survey participants...