The Beginning of the “Shakeout?”

Ron Friedmann has an excellent post (“Another EDD Acquisition: Iron Mountain Acquires Stratify“) on his Strategic Legal Technology blog that makes me believe we’re starting to see some shakeout in the e-discovery industry.

merge road sign.jpg

Iron Mountain announced on Oct. 31, 2007 that it was acquiring e-discovery vendor Stratify. This is a good move by Iron Mountain to complement their dominance of the records/storage/data protection space.

Ron kindly does the extra footwork of recounting the 9 e-discovery-related acquisitions that have happened before June 2006 including FTI’s acquisition of Ringtail in 2005 and the gobble of Applied Discovery by LexisNexis in 2003.

Next, Ron lists 11 acquisitions that have happened in the space SINCE June 2006 including LexisNexis buying CaseSoft and Dataflight (Concordance); Thomson acquiring LiveNote; Merrill Corp. acquiring Lextranet; Anacomp acquiring CaseLogistix; and the merger of Zantaz with Autonomy Corp.

Link to post.

One Comment

  1. I’ve been wondering for a while now about consolidation – it seems inevitable that an increasing percentage of the e-discovery and computer forensics industry’s work and income will go to fewer but bigger players in the field. But as this concentration increases, the marketing dollars that these players being with them increases awareness of the field to the public, to IT departments, to law firms, to insurance firms and to other potentially interested parties. So, while independent or small groups of practitioners receive a smaller and smaller slice of the pie, is the size of the pie increasing enough to offset such effects on smaller practitioners?
    Similar but differing effect have been noted in other industries. The proliferation of book superstores like Borders has taken out most small bookstores. Conversely, the Internet may have negatively impacted major news organizations as everyone can now be a reporter – or blogger! Starbucks seems to have created an awareness of premium coffees, allowing upstart roasteries in every community to come into existence, that it is now in the process of snuffing out through various competitive tactics.
    What scenario are we looking at in our industry, I wonder.

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