In an attempt to further enhance its technology services practice, Navigant Consulting Inc. (NCI) announced the acquisition of Ignited Discovery, a leading electronic evidence and discovery services provider. The financial terms of the deal remained undisclosed. With this acquisition, Navigant strengthened its process of data collection as well as processing and hosting capabilities for clients.
Founded in 2003, Ignited Discovery is a provider of e-Discovery services. Navigant’s management commented that rapid changes are taking place in the arena of litigation support and eDiscovery as clients are demanding flexible customized applications. Hence, we believe, the acquisition is a strategic fit for Navigant’s product requirement.
The Technology Services group is part of Navigant’s Disputes and Investigations practice. In the first quarter of 2011, Dispute and Investigative Services revenues grew 6.1% year over year and 2% sequentially. Management expects the segment to ramp up rapidly in the future.
Disputes and Investigations segment accounts for around 39% of the total revenue and provides a wide range of services to clients facing challenges from disputes, litigation, forensic investigation, discovery and regulatory compliance. The clients of this segment are principally law firms, corporate general counsel and corporate boards.
Navigant is on an acquisition spree since 2005 to build out its expertise in each and every arena of its business. It acquired A.W. Hutchison & Associates and Canadian forensic accounting and litigation consulting practices of Kroll Inc. in 2005, Precept Programme Management in 2006, Abros Enterprise Limited Bluepress Limited, all the assets of AMDC Corp. and Troika (U.K.) Limited in 2007, Chicago Partners LLC and The Bard Group LLC in 2008, Morse PLC’s Investment Management Consulting Business and Summit Blue Consulting in 2009, Empiris LLC, Daylight Forensic & Advisory LLC and EthosPartners Healthcare Management Group in 2010.
Navigant currently retains a Zacks #3 Rank, which translates into a short-term Hold rating. We are also maintaining our long-term Neutral rating on the stock. Some of the competitors of Navigant include CBIZ Inc. (CBZ) and Gartner Inc. (IT).
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