EPIQ Systems, Inc. (NASDAQ: EPIQ) today reported that it is acquiring the business of nMatrix, Inc. for $125 million consisting of $100 million cash and $25 million stock. nMatrix is a leading provider of case management and document management products and services for electronic discovery and litigation support. Marks Baughan & Co. was the exclusive financial advisor to nMatrix regarding this transaction.
nMatrix’s projected operating revenue for its fiscal year ending December 31, 2005 is approximately $20 million, more than double the revenue for its fiscal year ending December 31, 2004. The acquisition will provide complementary diversification to EPIQ Systems’ existing legal technologies business and extend the company’s presence in its core marketplace. EPIQ Systems will operate nMatrix as a wholly owned subsidiary from its current locations in New York, London, and Melbourne, Australia.
EPIQ Systems will fund the cash component of the purchase price with a combination of cash on hand and a $125 million credit facility arranged by KeyBank.
Tom W. Olofson, chairman and chief executive officer, and Christopher E. Olofson, president and chief operating officer of EPIQ Systems, said, “The acquisition of nMatrix provides us with an immediate leadership position in the high-growth electronic discovery market. There is a strong affinity between the business of nMatrix and EPIQ Systems’ existing presence in the legal technology services markets. We have a significant opportunity to grow nMatrix’s business and to leverage client relationships across the combined company.”
For more information on this transaction, please contact:
Nick Baughan
Managing Member
610.616.3294
nbaughan@marbau.com
Bill Takeuchi
Director
610.616.3296
wtakeuchi@marbau.com
About EPIQ Systems
EPIQ Systems is a national leader in the market for fiduciary management and claims administration systems and provides an advanced offering of integrated technology-based products and services. Their solutions enable clients to optimize the administration of large and complex bankruptcy, class action, mass tort, and other similar legal proceedings. EPIQ Systems’ clients include corporations, attorneys, trustees and administrative professionals who require sophisticated case administration and document management capabilities, extensive subject matter expertise, and a high service capacity. We provide clients a packaged offering of both proprietary technology and value-added services that comprehensively addresses their extensive business requirements. For more information, visit www.epiqsystems.com.
About Marks Baughan & Co.
Marks Baughan & Co. provides investment banking services to growth companies in the Financial Technology and Information Management sectors. Our narrow focus and deep expertise and relationships in these two verticals provide our clients with top-quality results driven by an efficient process. Started in 2004 by two former senior members of the Credit Suisse First Boston Technology Group, Marks Baughan & Co. has established itself as one of the most successful of the new boutique investment banks by combining bulge-bracket expertise with boutique service. Our clients range from public companies with multi-billion dollar market caps to private companies with $10 million in revenues. We deliver results for clients: advising on sales of entire companies and divisions, acquisitions, private placements of equity and debt securities, or strategic advisory services for CEOs and CFOs on public offerings, M&A plans, or investor positioning.