DEAL REPORTER
Epiq Systems (NASDAQ:EPIQ) continues to hold conversations with private equity firms about a possible sale, two sources familiar with the situation said.
The Kansas City-based provider of technology services to law firms has been reviewing a range of options since last year after receiving a takeover proposal.
In April, Epiq announced it was acquiring privately-held, Kansas City-based Iris Data Services, a provider of managed services for electronic discovery for USD 134m. The deal closed in early May.
CEO Tom Olofson told investors last month that Epiq had decided to delay its 2015 AGM meeting from the middle of June until early July due to the ongoing review. He said the Iris acquisition was not connected to the review.
This news service reported in February that Epiq’s sale process had moved into the second round with management presentations expected to happen later that month.
The second source familiar said the Epiq sale process had slowed down for a while but three to four weeks ago conversations picked up again with financial sponsors.
A previous report by this news service reported that Epiq had collected initial bids in mid-January, with Carlyle Group and Advent International among the suitors. Carlyle has since made it into the second round, it was reported.
Last year, Epiq rejected a USD 20 per-share bid from P2 Capital Partners, which subsequently launched an activist campaign. Epiq has settled with a second activist, St. Denis J. Villere & Company.
While Epiq could consider more acquisitions, the first source said the company does not expect to make another one in the next 12 months unless it partners with a private equity firm to repeat a deal like Iris. This source added that Epiq is not currently considering divestitures.
Credit Suisse and Kirkland & Ellis are financial and legal advisors for Epiq. The company declined to comment.
Alongside a sale, Epiq’s board has said it is considering a range of options including acquisitions, divestitures, or a recapitalization.