Pivotal Acquisition Corp., a public investment vehicle, and KLDiscovery, a global provider of electronic discovery and information governance services to Fortune 500 companies and top law firms, announced on May 20, 2019, that they have entered into a definitive agreement in which KLD and Pivotal will merge. As a result of the transaction, valued at approximately $800 million in enterprise value, KLD will become a publicly listed company.
The main opportunity to push for greater innovation and to draw on specialist capabilities obviously comes at contract time, and there is good news here. To keep up with rapidly changing technology requirements, corporate buyers have been trimming the sourcing cycle. The average contract length for IT and BPO deals shrunk from 4.8 years in 2007 to 4.3 years in 2017, according to IDC, and we expect it will settle at slightly more than 4 years.
A Net Promoter Score®, commonly referred to as NPS®, is a straightforward metric that measures customer experience and appears to be a predictor of company growth. Based on the importance of customer experience for eDiscovery businesses and the increasing investor activity in the data and legal discovery ecosystem, it appears to be a number of increasing interest to both organizational leaders and industry investors.
According to the IT Dashboard, federal agencies expect to invest a combined $1.6 billion in cloud infrastructure as a service (IaaS) and platform as a service (PaaS), $924 million in cloud software as a service (SaaS), and $9.9 billion in other managed services. The true figures are likely 15-20 percent higher, as $19 billion in national security-related IT projects are not reported to the dashboard.
The 2019 Legal Technology Salary Mashup shares an aggregation of general salary data points from publicly available research, reports, and industry observations that may be beneficial for use by legal technology leaders as they source and staff talent to support their data discovery and legal discovery business objectives.
In the spring of 2019, 159 eDiscovery Business Confidence Survey participants chose to answer at least one of the optional business operational metric survey questions in the quarterly survey. Almost 18% (17.6%) of survey respondents reported DSO as increasing in the spring of 2019. This is a strong increase from approximately 10% (10.3%) reporting DSO as increasing in the winter of 2019.
Just under 94% (93.3%) of eDiscovery Business Confidence Survey respondents feel the current business conditions are good or normal in the spring of 2019. This combined confidence level represents a solid increase in these same feelings when compared to the winter of 2019 where 89.3% felt the conditions were good or normal. However, respondents rating the current business conditions as good dropped to 41.1%, the lowest rating in this area since the inception of the survey. This drop appears to represent a solid, yet slowly diminishing optimism in the current general business climate for eDiscovery.
Sonasoft announces that it has signed a definitive purchase agreement to acquire the data engineering and artificial intelligence (AI) company, E-Connect Software, Inc., and all its related interests, assets, and intellectual property. E-Connect Software, Inc. is a data engineering and AI consulting firm with deep expertise and a proven track record in data management, cloud migrations, and data integration.
Spire Capital today announced that it has closed on the sale of Lighthouse Global, a leading technology-enabled eDiscovery and advisory services business. Financial terms were not disclosed. Macquarie Group acted as exclusive financial advisor to Spire Capital and Lighthouse. Dentons served as legal counsel to Spire Capital and Lighthouse.
Morae Global Corporation today announced that it has acquired professional services information management specialist Phoenix Business Solutions. The deal strengthens Morae Global’s strategic direction and capabilities around artificial intelligence and cloud-based technology and reinforces client and industry requirements to work with a more robust and trusted legal services partnership.