SAN RAMON, Calif.--(BUSINESS WIRE)--MergerTech (www.mergertech.com), a global investment bank whose mission is to enable small-to-medium-sized technology and technology-enabled companies to realize the value of their businesses, has dedicated a team of bankers to support the rapid pace of transactions and abundance of investment capital in the legal, compliance and information management sector. Industry veteran Prashant Dubey will lead the dedicated MergerTech banking team.
The Sarbanes-Oxley act of 2002, enacted in response to corporate accounting scandals such as Enron, Tyco and WorldCom, catalyzed an already thriving market by sensitizing corporations to the need for technology and services to ensure proper governance, accountability and controls. Other drivers such as amendments to the Federal Rules of Civil Procedure (FRCP) governing discovery have placed further demands on corporations to ensure transparency and good faith behavior.
In response, the provider market has swelled to the ranks of hundreds, with the majority of these companies having top line revenue of $3-$15 million per annum. Household-name technology companies such as EMC, IBM, HP and Microsoft are now required by their clients to demonstrate competence in the legal, compliance and information management domain. To fulfill these demands, these companies have made strategic investments in this marketplace through a spate of partnerships and acquisitions throughout the past 36 months. Private equity firms such as Providence Equity Partners and Welsh Carson and venture capital firms such as Advanced Technology Ventures, S3 Ventures, Redpoint Ventures, Clearstone Venture Partners and Menlo Ventures have already invested significant capital in this marketplace.
MergerTech has established this dedicated practice area to help investors identify and support value-added transactions in the legal, compliance and information management industry.
“Corporate accountability and transparency have and will continue to be the primary drivers for explosive growth in the market for providers of technology and services that enable proper risk, compliance and controls. An investment bank dedicated to small-to-medium-sized companies, focused on the underserved legal, compliance and information management market, will fulfill a dire need,” said Dubey. “MergerTech, with its innovative practices, domain expertise, global reach, and experienced bankers, aims for industry-leading targets of an average of 120 days for a transaction cycle with a goal of achieving an 80% close rate. This is precisely what is needed in a marketplace that is highly fragmented but contains a lot of talented, smaller companies that can add significant value to strategic buyers as well as financial buyers looking to consolidate the value chain. I am pleased to lead MergerTech’s efforts in this sector.”
To learn more about Dubey’s thoughts on the current investment opportunities within this space, please read his latest blog post on the MergerTech website.
“MergerTech obviously sees tremendous growth opportunity in the legal, compliance and information management industry, and we have invested heavily in this sector by dedicating an experienced team to the market. We are excited to welcome Prashant to the team to spearhead these efforts for us,” said Nitin Khanna, chief executive officer of MergerTech. “The characteristics of the legal marketplace are precisely the focus of MergerTech. Markets where the majority of companies are small-to-medium-sized have been woefully underserved, and MergerTech is dedicated to ensuring that these companies realize the value of their work.”
The MergerTech legal, compliance and information management banking practice has established relationships with strategic and financial buyers and is actively being engaged by sellers to create value-added matches and consummate high-value transactions.
About MergerTech – Converting Work Into Wealth
MergerTech is a specialty investment banking firm focused solely on small-to-medium-sized technology and technology-enabled services companies. It helps management teams and investors realize the value of their companies through its deep domain expertise and global knowledge of buyers. The company aims for industry-leading targets of an average of 120 days for a transaction cycle with a goal of achieving an 80% close rate. These results are driven by fast, knowledge-driven buyer-seller matches, a deep understanding of the best terms and value, and an efficient and nimble deal management process. MergerTech leaders have experience in all aspects of technology investment banking, including mergers and acquisitions, capital raises for growth or recapitalization, and a spectrum of advisory services. For more information, go to www.mergertech.com.