Interwoven Acquires E-discovery Firm

 
 
By Chris Preimesberger  |  Posted 2008-07-24 Email Print this article Print
 
 
 
 
 
 
 

Content management provider Interwoven will pay $36 million in cash for Discovery Mining, provider of an on-demand electronic records management service. Discovery Mining's service is typically used to sort and organize massive volumes of electronic records during the pre-trial investigative phase of major lawsuits.

Enterprise content management provider Interwoven is extending its reach into the e-discovery software-as-a-service business, which really is little more than a deeper dive into content management.

Interwoven announced July 24 it is acquiring six-year-old Discovery Mining, an e-discovery provider to professional services firms and corporations, for $36 million in cash.

Discovery Mining's software service automates the discovery phase of litigation and investigations for processing, reviewing and producing massive volumes of electronic data.

For its bundle of cash, Interwoven will obtain all outstanding shares of Discovery Mining and vested stock options and assume existing employee stock options.

Electronic records management software has become a strategic tool for organizations due to increasing national and regional regulations such as the 2006 additions to the Federal Rules of Civil Procedure, the Sarbanes-Oxley Act, and the Data Protection and Freedom of Information Acts.

E-discovery itself is the process by which records are gathered and processed for litigation. This includes anything digital: word processing files, photos, e-mail, audio and video files, instant messaging transcripts, Internet bookmarks, and even data center users' logs.

"E-discovery has become an absolutely vital component of the litigation process," Interwoven CEO Joe Cowan told a conference call of analysts and journalists. "Being able to handle and process hundreds or thousands of documents is a monumental job. These people [Discovery Mining] have figured out how to automate all of that. Their solution is unlike anybody else's on the market."

According to a recent report by Forrester Research, the North American e-discovery market, which in 2006 was $1.45 billion, will grow to almost $4.89 billion by 2011-an increase of 238 percent in five years.

Discovery Mining's service features capabilities for accelerated review, including concept searching, clustering, analytics and e-mail filtering.

Discovery Mining was ranked by law firms as a Top 5 provider of E-discovery services in the 2008 Socha-Gelbmann Electronic Discovery Survey. The company has worked with more than half of the Am Law 100 firms, as well as a number of Fortune 500 corporations.

Interwoven has an online community of more than 20,000 developers and over 300 partners.

The acquisition is expected to be completed in the third quarter of 2008.


 
 
 
 
Chris Preimesberger Chris Preimesberger was named Editor-in-Chief of Features & Analysis at eWEEK in November 2011. Previously he served eWEEK as Senior Writer, covering a range of IT sectors that include data center systems, cloud computing, storage, virtualization, green IT, e-discovery and IT governance. His blog, Storage Station, is considered a go-to information source. Chris won a national Folio Award for magazine writing in November 2011 for a cover story on Salesforce.com and CEO-founder Marc Benioff, and he has served as a judge for the SIIA Codie Awards since 2005. In previous IT journalism, Chris was a founding editor of both IT Manager's Journal and DevX.com and was managing editor of Software Development magazine. His diverse resume also includes: sportswriter for the Los Angeles Daily News, covering NCAA and NBA basketball, television critic for the Palo Alto Times Tribune, and Sports Information Director at Stanford University. He has served as a correspondent for The Associated Press, covering Stanford and NCAA tournament basketball, since 1983. He has covered a number of major events, including the 1984 Democratic National Convention, a Presidential press conference at the White House in 1993, the Emmy Awards (three times), two Rose Bowls, the Fiesta Bowl, several NCAA men's and women's basketball tournaments, a Formula One Grand Prix auto race, a heavyweight boxing championship bout (Ali vs. Spinks, 1978), and the 1985 Super Bowl. A 1975 graduate of Pepperdine University in Malibu, Calif., Chris has won more than a dozen regional and national awards for his work. He and his wife, Rebecca, have four children and reside in Redwood City, Calif.Follow on Twitter: editingwhiz
 
 
 
 
 
 
 

Submit a Comment

Loading Comments...
 
Manage your Newsletters: Login   Register My Newsletters























 
 
 
 
 
 
 
 
 
 
 
Rocket Fuel