Remember 2021 and 2022? Litera was buying so many companies that at times it was hard to keep track.
In August of 2022, I was at the ILTACON conference at National Harbor, Maryland. Litera had acquired two companies in the previous week, business intelligence company, BigSquare, and talent management software company, Micron Systems. These followed the substantial acquisitions of Foundation Software, Prosperoware, Workshare, and Kira Systems. Per Crunchbase, 15 acquisitions in the past 5 years.
I attended the Litera session, which was in a ballroom. Standing room only. The sense that something special was taking place was palpable. Litera’s new CEO, Sheryl Hoskins, introduced herself, mentioning her active duty in the Army. She was impressive .
Historically at ILTACON the companies with a big presence have been Thomson Reuters, Intapp, iManage, and NetDocuments. But in 2022, Litera had the momentum. They also had the ample pockets of Hg. And Hg was looking for growth.
A lot has changed in the economy in the past six months. The threat of a recession has loomed large. Interest rates are up. Law firms have laid-off associates. Many of the big tech companies have laid-off thousands of people.
From where I stand, legal tech appears to be holding strong. Very few legal tech dedicated companies are public, so we don’t get a quarterly window, or even an annual window, into revenues and profits. However, layoffs in legal tech have been limited thus far. At least two e-discovery companies have had layoffs. On the other hand, Exterro just acquired e-discovery rival Zapproved. Several legal tech firms, including NetDocuments, iManage, Aderant, and Litera are actively hiring.
It makes sense for Litera to take time to work on integrating all of the solutions which it has acquired in the past three years. Keep an eye on Litera. If we manage to have a soft landing, look for Litera and Hg to lead the way again.