Beaverton legal software maker Exterro recapitalized with its private equity backer Leeds Equity Partners in a transaction that values the company at $1 billion and paves the way for growth both organically and through M&A.
The deal also included a group of institutional investors co-led by Coller Capital and Glendower Capital. The profitable company has been working toward an IPO for several years and now has a target of 2023.
The details of this investment were not disclosed. Leeds first invested in the company in 2018, with more than $100 million to buy a majority stake.
“Since our last funding with Leeds Equity, global demand for Exterro's Legal (Governance Risk Compliance) platform has grown exponentially, fueling our product innovation as we've continued building best-in-class e-discovery, data privacy, forensics, risk, and compliance technologies," said Bobby Balachandran, founder and CEO of Exterro in a written statement.
Exterro, which has 600 global employees, makes software used by legal and IT departments to track, analyze, collect and manage all information related to the e-discovery process during litigation. It has added capabilities around data privacy as well as forensic investigation.
“As the lines between legal, finance, IT, and security departments blur, Exterro is in a unique position, offering the only platform that can effectively unify and address the data and the legal requirements of those disparate business silos,” Balachandran said.
About 10% of Exterro's workforce is at the company headquarters. The company has maintained profitability for most of its life. It was founded in 2008 and didn’t take any outside funding until 2018. It’s been prudent with hiring over the years, and despite any current macroeconomic uncertainty it is continuing to hire.
The company has 20 openings listed on its website.
The company has more than quadrupled its revenue since 2018 and now has more than 3,000 customers globally including Boeing, United Healthcare and Oracle. One increasing customer base is law enforcement forensics departments.
“Bobby Balachandran and the entire Exterro team have built an industry-leading business uniquely positioned to help enterprises manage and analyze data and drive actionable business intelligence. These are critical requirements to operating in the face of challenges across e-discovery, data privacy, cybersecurity and forensic investigations," said Jacques Galante, Partner at Leeds, in a written statement.
This investment will be used for research and development to further develop the platform as well as acquisitions.
