Exterro Completes Major Strategic Recapitalization of Over $1 Billion


Leeds Equity Partners, in partnership with Exterro management, closes its third continuation vehicle as part of this transaction

PORTLAND, Oregon., July 26, 2022 /PRNewswire/ — Exterro, Inc., a portfolio company of Leeds Equity Partners (“Leeds Equity”), today announced that it has completed a strategic recapitalization and raised additional committed equity a continuation vehicle transaction valuing Exterro at more than $1 billion (USD). With the backing of a group of leading global institutional investors co-led by Coller Capital and Glendower Capital, this transaction will allow Exterro to focus more resources on growing its Legal GRC product portfolio through mergers and acquisitions and product development. Exterro will continue to develop new initiatives for law firms and service providers, accelerate the growth of its digital forensics product set, and reinvest in its premier global training academy as it delivers new products to new geographies. As part of the recapitalisation, Leeds Equity has made a significant new equity commitment from its latest flagship fund, Leeds Equity Partners VII, LP, alongside the continuation vehicle and management.

Exterro is a leading provider of legal governance, risk and compliance (GRC) software, providing deep insights into data, workflow efficiency and process orchestration in cases of using e-discovery, digital forensics, data privacy and cybersecurity. The company operates in a large, fast-growing market with significant macroeconomic drivers, including increasing litigation volumes, the proliferation of enterprise data, an increasingly complex regulatory environment, the convergence of data risks and the ubiquity of digital evidence in criminal and terrorist activities.

“Since our last funding with Leeds Equity, global demand for Exterro’s Legal GRC platform has grown exponentially, fueling our product innovation as we continue to develop the best technologies in eDiscovery, privacy data, forensics, risk and compliance,” said Bobby Balachandran, founder and CEO of Exterro. “As the lines between legal, financial, IT and security departments blur, Exterro is uniquely positioned, offering the only platform that can unify and effectively address the data and legal requirements of these business silos. Leeds Equity has been an incredible partner in Exterro’s growth, and we are delighted to continue our partnership with them as Exterro enters this new phase of growth.”

Since Leeds Equity’s initial investment in 2018, Exterro has more than quadrupled its revenue and now serves more than 3,000 clients worldwide. Exterro’s concerted growth strategy has focused on organic product innovation, geographic expansion, and strategic mergers and acquisitions, including the acquisition and integration of Jordan Lawrence and AccessData. It also included significant R&D investments in e-discovery, privacy, digital forensics and incident management, as well as investments in the Exterro team. These business-critical activities are integrated with Exterro’s industry-leading Legal GRC platform, which was purpose-built to manage the convergence between legal operations, litigation support, compliance, breach response and internal investigations. In addition to Exterro’s enterprise markets, the company has also increasingly served law enforcement forensic departments, providing increased efficiency to agencies experiencing budgetary and personnel constraints, most recently with the from the United Kingdom West Midlands Police department.

Bobby Balachandran and the entire Exterro team have built an industry-leading company uniquely positioned to help businesses manage and analyze data and generate actionable business intelligence. These are essential requirements to operate against the challenges of eDiscovery, data privacy, cybersecurity and forensic investigations,” said Jacques Galante, partner at Leeds Equity Partners. “We look forward to building on this excellent partnership as Exterro continues to seize the immense opportunity for growth in its global markets.

Mr. Balachandran originally founded Exterro in 2008 with the belief that the legal industry would benefit and that there was huge demand for process improvements that could be learned from lessons learned in other industries. Today, Exterro offers the only Legal GRC platform for enterprises – which include global companies such as Boeing, United Healthcare, American Express, Aflac and Oracle – to mitigate risk, control costs and have complete visibility of end-to-end on their legal processes. . Exterro has won numerous industry awards and accolades including Global InfoSec Awards, Best Forensic Product (2022), KM World Reader’s Choice Awards, Best e-Discovery (2021), LegalTech Breakthrough, LegalTech CEO of Year (2021), and more. The company also contributes to many civic causes supported by its Exterro Gives Back initiative, which supports several organizations, including Women Entrepreneurs of IndiaOperation Child in the US, Safe Escape in the UK, and the founding of the LifeRay Foundation, to name a few.

“The Legal GRC sector continues to be very attractive given the macro tailwinds, and we are proud to continue our strong partnership with Exterro to strengthen its leading position in the market. We are delighted to continue supporting the business through organic investments and strategic mergers and acquisitions,” said Kevin MaloneDirector at Leeds Equity Partners.

Jefferies Financial Group, Inc. acted as financial advisor, while Kirkland & Ellis and Reed Smith served as legal counsel on the transaction.

About Exterro, Inc.

Exterro enables legal teams to proactively and defensibly manage their legal governance, risk and compliance (Legal GRC) requirements. Our Legal GRC software is the only comprehensive platform that automates the complex interconnections of privacy, legal operations, digital investigations, cybersecurity response, compliance and information governance. Thousands of legal teams around the world at corporations, law firms, managed service providers, and government and law enforcement agencies trust our integrated Legal GRC platform to manage their risk and obtain positive results at a lower cost. For more information, visit www.exterro.com

About Leeds Equity Partners

Leeds Equity Partners is a private equity firm dedicated exclusively to partnering with management teams in the education, training and information services sectors (the “knowledge industries”). The company was founded in 1993 and has managed over $4.5 billion of capital in a wide range of companies within knowledge-based industries. Leeds Equity seeks to leverage its industry expertise and market knowledge to create long-term value for its partner companies. For more information visit www.leedsequity.com

For more information:
Leeds Equity Partners
Such. 212-835-2000
Fax: 212-835-2020



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