business merger

Today, e-discovery services firm HaystackID announced it has acquired data management provider eTERA Consulting.

ETERA provides a number of e-discovery analysis and consulting offerings, including end-to-end electronic evidence analysis, document review and data metric reporting solutions, and more. HaystackID's e-discovery solutions, meanwhile, include a forensics service and electronically stored information assessment.

Senior leadership teams from both organizations reinvested in the combined business, along with investments from Knox Capital, ORIX Mezzanine & Private Equity, Maranon Capital and Baird Principal Group for an undisclosed amount, according to a press release announcing the acquisition.

The release also noted that eTERA will fully integrate and operate as HaystackID, with eTERA no longer maintaining separate branding. The CEO of HaystackID, Hal Brooks, told Legaltech News eTERA integrating and operating as HaystackID was warranted because HaystackID's brand was more recognizable and a better fit.

“The brand HaystackID is more resonating and provides much more diverse offerings,” Brooks said.

ETERA founder and president Scott Holec will now serve as a chief operating officer at HaystackID, and the release noted that HaystackID will be absorbing “the eTERA senior management team as well as all eTERA employees in the combined organization.”

This is the latest e-discovery acquisition for HaystackID. In April, the legal tech company acquired Envision Discovery and Inspired Review. Envision integrated into HaystackID's offerings, while Inspired Review remained a separate unit.

In October 2017, HaystackID completed a fairly rare recapitalization that allowed it to continue as an independent company. Funders of the recapitalization were largely unnamed, apart from Knox Capital, which joined HaystackID as a shareholder and lender.

Mike Bryant, operating adviser at Knox Capital, noted, “More and more corporate and law firm buyers are looking into more managed services packaged services, services that are comprehensive in nature.”

ETERA, which was known in the corporate market, would immediately increase HaystackID's visibility in the corporate world, Bryant said.

While eTERA will integrate into HaystackID, not all legal tech acquisitions lead to a merger of brands. Recently, legal services provider Driven Inc. acquired e-discovery company Omnivere. However, Driven's CEO said they would “eventually” integrate Omnivere into its brand, adding that Driven had a high level of acquisitions in years past and does not want to confuse clients.

Bryant, however, noted that operating as one brand offered uniformity for the growing company.

“I think it's just simplicity in working as one brand,” he explained. “We thought when evaluating the brand recognition in the market, it would just be well received by the market, well received by employees and clients.”