The Ontario, Canada-based enterprise software company OpenText announced Wednesday it has acquired the San Francisco e-Discovery and legal technology company Recommind for $163 million.
The deal is expected to close in the first quarter of 2017, according to a press release.
OpenText also said it believes Recommind will generate between $70 million and $80 million in annual revenue and be immediately accretive to earnings.
Recommind primarily produces three products: Its flagship software, Axcelerate, is used for eDiscovery review and analysis.
Last year, it also unveiled Perceptiv, which is being used in partnership with Deloitte to extract data from over-the-counter derivative legal agreements.
Lastly, it has Decisiv, which it describes as an enterprise-wide information search tool, which some law firms have used for knowledge management.
Meanwhile, OpenText describes itself as Canada’s largest software company with $1.9 billion in annual revenues in 2015. In a presentation to investors, OpenText said the acquisition will give it a foothold in the e-Discovery market and a company with expertise in managed services and established customer relationships based on multi-year cloud offerings.
It listed Recommind’s customers as Latham & Watkins, Norton Rose, Morgan Lewis, Drinker Biddle & Reath as well as banks such as Goldman Sachs and UBS, tech companies including Google and Cisco and companies in the healthcare, energy, insurance and other sectors.
OpenText software functions in a number of areas including enterprise content management, business process management, customer experience management, business networks and discovery.
Recommind declined to comment through an outside spokeswoman and OpenText did not return calls seeking comment.