Interwoven buys into e-discovery for US$36m

Content management software provider Interwoven has announced it is to acquire e-discovery firm Discovery Mining in a US$36 million deal.

Discovery Mining's software-as-a-service offering eDiscovery is designed to allow end users to search vast quantities of electronic data for litigation and investigation purposes.

The acquisition will be welcomed by Interwoven's large number of legal customers, who are increasingly being asked by their clients to provide e-discovery services, according to Mike Davis of analyst firm Ovum.

"It's a very logical pattern for Interwoven," he added. "These legal practices are being asked to do e-discovery so if you have data mining capabilities it makes you more attractive."

The growth in e-discovery solutions has been driven primarily by changes to the Federal Rules of Civil Procedures in the US which makes any electronic data potentially admissible as evidence in law suits. Last year enterprise search vendor Autonomy acquired e-discovery vendor Zantaz in a US$375 million deal.

"We have publically stated that we'll grow organically and inorganically and leverage our financial strength to look for companies in high growth markets," explained Interwoven chief marketing officer Ben Kiker. "This is absolutely a high growth market – and our customers are asking us to do it."

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