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KCK-based Epiq’s shareholders take $1 billion buyout, trigger merger

The $1 billion sale of Kansas City, Kan.-based Epiq Systems Inc. will lead to its merger with an Atlanta-based rival.
The $1 billion sale of Kansas City, Kan.-based Epiq Systems Inc. will lead to its merger with an Atlanta-based rival. File photo

Shareholders of Kansas City, Kan.-based Epiq Systems Inc. on Tuesday approved the company’s $1 billion buyout that will lead to its merger into a rival company.

The buyers are OMERS Private Equity, which is the investment arm of the OMERS pension plan in Ontario, Canada, and investment funds managed by New York-based Harvest Partners LP. They’re paying $16.50 a share for Epiq, which provides electronic discovery, software and other services to law firms.

OMERS already is the majority owner of Atlanta-based DTI, another global provider of services to the legal community. Epiq will combine with DTI after the deal is completed.

The deal, announced in July, ended nearly two years of strategic review at Epiq that had been triggered by pressure from unhappy shareholder groups. One group, New Orleans-based St. Denis J. Villere & Co., sued Epiq at one point and sought to gain control of the company through a battle for seats on its board of directors.

Epiq’s announcement said more than 90 percent of the company’s shares voted on the buyout and that nearly all of those voted in favor of the all-cash deal. It required approval from two-thirds of Epiq’s outstanding shares.

The sale is expected to be completed Friday.

Mark Davis: 816-234-4372, @mdkcstar

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