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Open Text Acquires Catalyst Repository Systems For eDiscovery Tech

Feb. 06, 2019 12:38 PM ETOpen Text Corporation (OTEX), OTEX:CA


  • Open Text has acquired Catalyst Repository Systems for $75 million in cash.
  • Catalyst provides an enterprise-grade eDiscovery and multi-matter management system for large law firms and corporate legal departments.
  • OTEX management has identified the legal industry as poised for faster adoption of digital technologies to reduce costs and improve results.
  • The deal for Catalyst enables the firm to offer a full suite of capabilities to the legal vertical, both within the U.S. and in Europe.
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Quick Take

Open Text (NASDAQ:OTEX) announced it has acquired Catalyst Repository Systems for about $75 million.

CRS provides eDiscovery software for the corporate legal industry.

Management believes the legal industry is poised to adopt advanced digital technologies to drive efficiencies and improve results.

With the deal, OTEX is able to offer large scale enterprises and top 200 law firms a full-featured, enterprise-scale legal eDiscovery and matter management system.

Target Company

Denver, Colorado-based CRS was founded in 2000 to help corporations and law firms reduce the total cost of discovery and take control over large-scale discovery and regulatory compliance.

Management is headed by CEO John Barr, who has been with the firm since 2016 and was previously VP Market Development/Integration at AppNexus.

Catalyst Repository Systems' primary offerings include:

  • Search and Analysis
  • Data Management
  • Document Review
  • Managed Services

Investors have invested $36 million in the company and include FTV Capital. Source: VentureDeal Venture Capital Database

Market and Competition

According to a market research report by Research and Markets, the global eDiscovery software for the legal industry market was valued at $10.8 billion in 2018 and is projected to reach $17.3 billion by 2023.

This represents a CAGR of 10% between 2018 and 2023.

The main drivers for this expected growth are the growing focus on reducing the costs of law departments while increasing the number of litigations, the need to adhere to regulation, and rapid adoption of mobile devices.

The Asia-Pacific region is projected to grow at the fastest rate due to the rapid adoption of digital technologies by small and medium enterprises.

Major competitive vendors that provide eDiscovery software include:

  • AccessData
  • Commvault Systems (CVLT)
  • Conduent (CNDT)
  • Deloitte
  • IBM (IBM)
  • Microsoft (MSFT)
  • Fronteo (FTEO)

Source: Sentieo

Acquisition Terms and Rationale

Open Text disclosed the acquisition price and terms as $75 million

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This article was written by

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