Omers Private Equity and Harvest Partners LP have agreed to buy legal software provider Epiq Systems Inc. (Nasdaq: Epiq) for $1 billion, including debt. After the transaction closes, Epiq will become part of Omers-backed outsourcing company DTI. The acquisition will expand Epiq’s and DTI’s geographic reach along with their product services.
Epiq, based in Kansas City, Kansas, provides technology designed to help law firms and legal professionals navigate through complicated information in bankruptcy, class action and mass tort cases. The company previously announced plans to explore strategic alternatives including acquisitions, divestitures and going private. In 2015, Epiq purchased e-discovery services provider Iris Data Services.
Michael Graham, the head of Omers North America, says the acquisition of Epiq shows “the confidence we have in the DTI platform and the future of the legal process outsourcing industry.”
There have been some other deals in legal software in the middle market. In 2015, Roper Technologies Inc. (NYSE: ROP) announced plans to buy Aderant Holdings Inc. from Madison Dearborn Partners. Aderant makes software that helps law firms manage case loads, billing and docket calendars. Also in 2015, Thoma Bravo-backed Hyland Software completed the acquisition of LawLogix Group from PNC Riverarch Capital and Akoya Capital Partners. LawLogix develops electronic I-9 and immigration case management software.
Credit Suisse Securities (USA) LLC and Kirkland & Ellis LLP are advising Epiq. Wells Fargo Securities (NYSE: WFC) and Weil Gotshal & Manges LLP along with Bryan Cave LLP are advising DTI and Omers. BofA Merrill Lynch and White & Case LLP are advising Harvest. Bank of America Merrill Lynch and Goldman Sachs Group Inc. (NYSE: GS) are providing financing.