Legal software maker Exterro acquires e-discovery firm Zapproved, delaying IPO schedule

• Deal brings together two companies founded in Portland, Oregon
• Exterro looks to 2024 for a possible IPO

(Reuters) – Legitimate software maker Exterro Inc, which announced last summer that it was valued at $1 billion

The acquisition helps Exterro expand its data governance, risk and compliance offerings for clients that include corporate legal departments and law firms, said Bobby Balachandran, CEO and President of Exterro.

The companies did not disclose the financial terms of the transaction.

“Data has become the most important asset for any organization,” said Balachandran. With that power “comes a lot of risk,” he said. Exterro’s products help businesses and other customers resolve privacy, compliance, and legal disputes.

Exterro’s acquisition of Zapproved brings together two Portland, Oregon-based companies, both founded in 2008.

Exterro, a portfolio company of private equity firm Leeds Equity Partners, completed a recapitalization backed by Leeds and other investors that raised its valuation to more than $1 billion last year, the company said in July.

While Balachandran previously said that Exterro is eyeing an IPO as early as 2023, he said the company is likely now looking towards 2024 due to current market volatility.

“We believe in these market conditions, we’re going to keep growing… and then we’re waiting for the right time for things to settle down in the market and I think we’re going to be in good shape,” he said.

According to a 2021 forecast by International Data Corporation, the governance, risk and compliance market will grow from $11.3 billion in 2020 to approximately $15.2 billion in 2025.

Exterro’s previous acquisitions include digital forensic investigations technology provider AccessData and privacy and information management company Jordan Lawrence.

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Sarah Mark

Thomson Reuters

Sara Merken reports on privacy and data security and legal business, including legal innovations and key players in the legal services industry. You can reach her at [email protected]