Apax IX acquires Lexitas
The Apax IX Fund (“Apax IX”) has today announced the acquisition of Lexitas, a leading technology-enabled litigation services provider in the United States.
Founded in 1987 and headquartered in Houston, Texas, Lexitas is a leader in deposition and records retrieval providing services including court reporting, legal videography and record retrieval to law firms, insurers and corporate legal departments. The opportunity is to back a leading player in a growing market to accelerate growth through numerous operational levers, such as geographic and salesforce expansion, technology differentiation, as well as through strategic M&A.
AGA, whose shares are listed on the London Stock Exchange, provides investors with access to the investment expertise of Apax Partners through its investments in a diversified portfolio of private equity funds advised by Apax Partners as well as derived investments in debt and equity. In May 2016, AGA committed $350m to Apax IX.
Funds advised by Apax Partners acquire Lexitas from Trinity Hunt
Investment to support Lexitas in accelerating growth through geographic and salesforce expansion, technology differentiation and M&A
Houston, Texas and New York, USA: 5 November 2019 – Funds advised by Apax Partners (the “Apax Funds”) today announced the acquisition of Lexitas, a leading technology-enabled litigation services provider in the United States, from Trinity Hunt Partners and management / other Lexitas investors. Financial terms of the transaction were not disclosed.
Founded in 1987, Lexitas is a leader in deposition and records retrieval services for law firms, insurers and corporate legal departments. The company serves as a strategic litigation support partner for legal professionals for services including record retrieval, court reporting and legal videography. Lexitas is headquartered in Houston, Texas, and has a network of offices across the US.
The investment by the Apax Funds will support Lexitas in accelerating its growth through geographic and salesforce expansion, technology differentiation, and through strategic M&A.
Gary Buckland, CEO of Lexitas, stated, “We are very excited to partner with the Apax team as Lexitas continues to broaden its reach in the outsourced litigation services market. There is tremendous opportunity to expand the depth and quality of our offerings for our clients while continuing to support growth in the business through strategic acquisitions. We are proud to have partnered with Trinity Hunt in growing Lexitas to where it is today and look forward to an exciting future with Apax.”
Ashish Karandikar, Partner at Apax Partners, said: “Over the past few years, we have prioritized the deposition services and record retrieval market as an attractive investment area due to its growth and resilience during economic downturns. Within this space, Lexitas has established itself as a leading player thanks to its customer service and technology investments. We see numerous levers for growth available to Lexitas, including opportunities to expand into new markets. We look forward to working with Gary and his team to capture this potential.”
Deloitte Corporate Finance LLC served as financial advisor to the Lexitas investors in the transaction, while Katten Muchin Rosenman LLP served as legal advisor. The Apax Funds were advised by William Blair & Co (financial advisor), Ernst & Young (accounting and tax advice) and Kirkland & Ellis LLP (legal counsel).
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About Apax Global Alpha Limited
AGA is a Guernsey registered closed-ended collective investment scheme incorporated as a non-cellular company that listed on the London Stock Exchange on 15 June 2015. It is regulated by the Guernsey Financial Services Commission.
AGA’s objective is to provide shareholders with capital appreciation from its investment portfolio and regular dividends. The Company is targeting an annualised Total Return, across economic cycles, of 12-15% (net of fees and expenses) including a dividend yield of 5% of Net Asset Value.
The investment policy of the Company is to make Private Equity investments in Apax Funds, and Derived Investments which are investments in equities and debt derived from the insights gained via Apax Partners’ Private Equity activities. The Company’s portfolio is expected to be allocated in approximately equal proportions between Private Equity and Derived Investments, although the investment mix will fluctuate over time due to market conditions, investment opportunities, cash flow requirements, the dividend policy and other factors. Further information regarding the Company and its publications are available on the Company’s website at www.apaxglobalalpha.com.
About Apax Partners LLP
Apax Partners is a leading global private equity advisory firm. Over its more than 40-year history, Apax Partners has raised and advised funds with aggregate commitments of c.€40 billion. Funds advised by Apax Partners invest in companies across four global sectors of Tech & Telco, Services, Healthcare and Consumer. These funds provide long_term equity financing to build and strengthen world_class companies. For further information about Apax Partners, please visit www.apax.com.
Apax Partners is authorised and regulated by the Financial Conduct Authority in the UK.