Xerox to Acquire Amici LLC20 Jun, 2006
Xerox to Acquire Amici LLC
STAMFORD, CT--To expand its document management services business, Xerox Corporation has agreed to acquire privately-held Amici LLC for $174 million. Amici s a leading provider of electronic-discovery (e-discovery) services, primarily supporting litigation and regulatory compliance.
E-discovery is the identification, filtering, production and storage of relevant data from paper or electronic documents, like e-mail, text files, memos, databases, presentations and spreadsheets. Projected to grow at an annual compounded rate of close to 40 percent, e-discovery services could be a nearly $2.5 billion market in the U.S. by 2009, according to IDC.Amici, based in Albany, N.Y., provides comprehensive litigation discovery management services, including the conversion, hosting and production of electronic and hardcopy documents. The company also provides consulting and professional services to assist attorneys in the discovery process.
"Xerox's financial strength gives us the flexibility to pursue attractive growth opportunities by integrating our document technology and services with the specialized skills of a company like Amici," said Anne M. Mulcahy, Xerox chairman and chief executive officer. "Through our acquisition strategy, we're identifying successful companies in niche markets that share our commitment to innovation, personalized service, and document management offerings that help people work smarter, faster and better. Amici brings all these strengths to our company and, along with Xerox's litigation support services, will bring all these benefits to our clients -- positioning Xerox as a leader in this burgeoning market."
Amici's services include collecting, organizing, storing and producing massive amounts of e-discovery documents, all of which can be shared by various parties using Amici's secure Web-based hosting system. The company's technology and services improve collaboration among law firms, experts, corporate legal counsels, clients and their approved users of the customized Web site, which allows users to search, retrieve and research documents applicable to depositions and trials.
According to Gartner Inc., this year alone, an estimated three-quarters of all global companies will be involved in regulatory or legal action that requires a systematic approach to legal discovery*. Gartner also believes that, through the year 2010, companies that have not adopted formal e-discovery processes will spend nearly twice as much on gathering and producing documents as they will on legal services.
"Amici's competitive advantage is the speed, flexibility and quality of its technology as well as the talent and commitment of its workforce," said Tom Dolan, president, Xerox Global Services, noting Amici's cadre of highly trained network and database specialists and litigation professionals with experience in complex matters. "The combination of Amici's talent and technology with Xerox's other litigation and records management services will help us meet our clients' expanding needs for litigation, risk and compliance management."
Amici was founded in 2002 and currently employs about 125 people, most of who are based at the company's headquarters in Albany. Upon completion of the acquisition, the vast majority of Amici employees are expected to join Xerox Corporation including Amici's current president and CEO, Craig Freeman. He will remain head of the organization, reporting to John Kelly, senior vice president and chief operating officer of Xerox Global Services.
Xerox's all-cash purchase of Amici also includes a performance-based supplement to the sale price. The acquisition is expected to close in the next 30 days, subject to receipt of regulatory approvals and customary closing conditions.