Guidance to acquire CaseCentral

Guidance Software has inked a deal to purchase cloud-based review and production software provider CaseCentral.

Guidance says the move will result in a complete e-discovery platform addressing the e-discovery needs of corporations and government agencies, adding that the combined offering will provide customers increased efficiency and automation, as well as lower risk for e-discovery activities. The integrated solution will span from legal hold to identification, collection, preservation, processing, first pass review, as well as CaseCentral's SaaS early case assessment (ECA), review and production capabilities. EnCase eDiscovery will deliver the legal hold, identification, collection, preservation and processing functions on premise at the customer site, and CaseCentral will handle the ECA, review and production functions as SaaS in the Cloud.

Under the terms of the agreement, Guidance Software will acquire CaseCentral for upfront consideration of approximately $17.1 million, consisting of about $8.3 million in cash, $8.3 million in Guidance Software common stock and the assumption of $500,000 of debt, net of cash. Depending on CaseCentral's SaaS revenue growth, Guidance Software may pay up to an additional $33 million in cash over the next three years. The transaction is subject to customary closing conditions and is expected to close during the first quarter of 2012. Guidance Software expects the transaction to add approximately $10 million in SaaS revenue in 2012, and to be slightly dilutive to slightly accretive to 2012 non-GAAP EPS and accretive to 2013 non-GAAP EPS.