Los Angeles, CA —July 25, 2011 – ACT Litigation Services, Inc. (“ACT” or the “Company”) announced the successful sale of its assets to DiscoverReady, a subsidiary of The Dolan Company (NYSE:DM). ACT is one of the country’s oldest and most successful complex litigation automation firms and specializes in providing technology and process solutions to Fortune 1000 companies and AmLaw 200 law firms. DiscoverReady provides first-pass document review, managed services and data processing and hosting to the e-discovery sector. Like ACT, DiscoverReady services the legal needs of large corporations and their legal counsel. The purchase price was $65 million with additional future payments possible depending upon performance.
“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. The acquisition combines industry leaders in review and in technology and process development,” said James P. Dolan, President and Chief Executive Officer of The Dolan Company.
ACT’s co-founders Steve Marks and Hank Schorz, together with Vice President Tom Stevens and the other members of the Company’s senior leadership team, will continue to lead day-to-day operations of the ACT business. Steve Marks, ACT’s President, explained, “finding a partner like DiscoverReady, which shares so many of our cultural values, was critical, both for our customers and our employees. Together, ACT and DiscoverReady will leverage our complementary strengths and our collective intelligence to build a stronger company than we were separately.” Hank Schorz, ACT’s Executive Vice President and Chief Technology Officer,added, “the integration of the two companies will result in one of the most robust service offerings available in our industry.”
Steve Marks noted, “it was great to have FocalPoint by our side throughout the process. Without their advice and experience, we would not have been able to confront the challenges presented by our unique deal structure. FocalPoint was instrumental in structuring a deal with a strategic partner that allowed us to accomplish our goal of an outright sale while preserving future upside based on the performance of the business.”
Nishen Radia, Managing Director at FocalPoint, commented, “we are thrilled to be able to deliver such a successful outcome for the owners of ACT. While the Company flattened out through the economic downturn, 2011 performance has returned to ACT’s previous aggressive growth patterns and we were able to secure a valuation that reflected the upturn. The transaction provides us with immense satisfaction at a job well done and represents our second closing in the legal services industry in 2011. We congratulate the entire ACT team”.
About ACT Litigation Services, Inc.
ACT Litigation Service, Inc. is one of the country’s oldest and most successful complex litigation automation firms serving clients from the country’s largest law firms and corporations. Since 1988, ACT has provided its services to leading Fortune 1000 companies and AmLaw 200 law firms. ACT’s operating headquarters and data center are in Valencia, CA, with other offices in Philadelphia, Pittsburgh, New York City, Cleveland and the Philippines. For more information on ACT, please visit www.actlit.com.
About DiscoverReady
DiscoverReady provides first-pass document review, managed services and data processing and hosting to the e-discovery sector. DiscoverReady is headquartered in New York City with operational management in Charlotte, NC, and San Francisco, CA. For more information on DiscoverReady, please visitwww.discoverready.com.
About FocalPoint
FocalPoint is an independent investment bank, specializing in mergers and acquisitions, private placements (both debt and equity), financial restructurings and distressed transactions. The firm serves middle market clients throughout the U.S.
Please contact Nishen Radia or Brian Little at 310-405-7000 with any questions about this transaction.