The Carlyle Group and Revolution Growth alongside management today announced they have acquired LDiscovery, LLC, a technology-enabled eDiscovery services provider based in McLean, Virginia. Led by Founder & CEO Chris Weiler, LDiscovery provides a full suite of innovative information discovery and governance solutions that help companies, law firms and government agencies manage increasingly extensive and complex litigation processes. Additionally, Daniel F. Akerson, former Chairman and CEO of General Motors and former Head of Global Buyout at The Carlyle Group, has become Chairman of LDiscovery. Financial terms of the transaction were not disclosed.
“For over a decade, LDiscovery has been at the forefront of the rapidly growing eDiscovery services market, and the company has an outstanding reputation for client service and a world class technology platform. We are excited to partner with Chris and his management team to help the company continue to invest in innovative solutions and pursue strategic acquisitions to best serve the company’s clients,” said William Darman, a Managing Director with The Carlyle Group.
LDiscovery serves more than 700 blue chip clients, including some of the world’s largest financial institutions, Fortune 1000 companies and AmLaw 100 firms. The company’s comprehensive discovery solution addresses each step of the Electronic Discovery Reference Model (EDRM), a process essential to the workflow of any major legal action or lawsuit.
“Having partners like Carlyle and Revolution will help accelerate LDiscovery to the next level by continuing to invest in our customer service capabilities and our technology solutions. I am thrilled to be working with both firms during this next phase of growth,” said Chris Weiler, CEO of LDiscovery.
“We’re excited to partner with Carlyle and Chris as we execute on our mission to invest in and help build companies that are transforming large, traditional industries with innovative products and services,” said Revolution Growth partner Evan Morgan.
Carlyle’s investment came from the Carlyle U.S. Equity Opportunity Fund II, a U.S. middle-market fund. The middle market team’s investments include: Philadelphia Energy Solutions, the largest refinery on the eastern seaboard; Service King, one of the largest automotive collision repair centers in the U.S.; AxleTech International Holdings, Inc., a manufacturer of automotive components; ECi Software Solutions, a provider of enterprise resource planning and business applications to small and medium sized businesses; and Coalfire, a provider of cyber-risk and compliance services.
Revolution Growth seeks to invest in companies that are attacking large, traditional industries with innovative products and services. The firm has invested in companies such as e-commerce platform Bigcommerce, reverse logistics operator Optoro, and sports data analytics provider SportRadar.
Latham & Watkins LLP served as legal advisor, and Ernst & Young as financial advisor, to Carlyle and the acquirer. Cooley LLP served as legal advisor to Revolution. Hogan Lovells served as legal advisor, and Robert W. Baird & Co. as financial advisor, to the company, which prior to the transaction had been controlled by an affiliate of WestView Capital Partners.
Established in 2005 and headquartered in McLean, VA, LDiscovery provides a full range of legal and technology consulting services to law firms, corporations and government agencies. Comprised of attorneys, engineers, computer forensic experts, and litigation support professionals, LDiscovery is a leader in delivering best in class end-to-end eDiscovery solutions supporting the litigation, regulatory compliance and internal investigation needs of our clients. LDiscovery provides data collection and forensic investigation, early case assessment, electronic discovery and data processing, application software and data hosting for web-based document reviews, and managed legal review services. LDiscovery has been recognized as one of the fastest growing companies in North America by both Inc. Magazine (Inc. 5000) and Deloitte (Deloitte’s Technology Fast 500) and our President, Chris Weiler, was recognized as a 2014 Ernst & Young Entrepreneur of the Year™. Additionally, LDiscovery is an Orange-level Relativity Best in Service Partner, a Relativity Premium Hosting Partner, and its data centers are ISO/IEC 27001 Certified.
About Carlyle Group
The Carlyle Group (carlyle.com) is a global alternative asset manager with $188 billion of assets under management across 126 funds and 160 fund of funds vehicles as of September 30, 2015. Carlyle’s purpose is to invest wisely and create value on behalf of its investors, many of whom are public pensions. Carlyle invests across four segments Corporate Private Equity, Real Assets, Global Market Strategies and Investment Solutions in Africa, Asia, Australia, Europe, the Middle East, North America and South America. Carlyle has expertise in various industries, including: aerospace, defense & government services, consumer & retail, energy, financial services, healthcare, industrial, real estate, technology & business services, telecommunications & media and transportation. The Carlyle Group employs more than 1,700+ people in 35 offices across six continents.
About Revolution Growth
Founded and led by Steve Case, Ted Leonsis, and Donn Davis, Revolution Growth (revolution.com/growth) invests in companies that can change the world. Its mission is to build disruptive, innovative businesses that offer consumers more choice, convenience and control in their lives. By taking a long-term approach and developing a true, hands-on partnership with entrepreneurs and management teams, Revolution Growth brings a unique strategy and passion to investing in and building significant companies.
Carlyle, Liz Gill
P: 202-729-5385 - E: Elizabeth.gill[.]carlyle.com.
Revolution, Meredith Balenske
P: 202-776-1413 - E: meredith.balenske[.]revolution.com.