Business

Epiq Systems loss grows in second quarter as buyout advances

Epiq Systems, based in Kansas City, Kan., said Wednesday it lost $5.6 million, or 15 cents a share, in April, May and June compared with a $3.2 million loss, or 9 cents a share, a year earlier.
Epiq Systems, based in Kansas City, Kan., said Wednesday it lost $5.6 million, or 15 cents a share, in April, May and June compared with a $3.2 million loss, or 9 cents a share, a year earlier.

Kansas City, Kan.-based Epiq Systems Inc. reported a larger loss in its second quarter and continued work to complete its sale to a rival’s owner in a $1 billion transaction.

Epiq, which provides technology and services to the legal profession, said Wednesday it lost $5.6 million, or 15 cents a share, in April, May and June compared with a $3.2 million loss, or 9 cents a share, a year earlier. Revenues were unchanged at $130.6 million.

CEO Tom Olofson said in an announcement that management looks forward “to concluding our recently announced transaction with OMERS Private Equity and Harvest Partners, two experienced and world-class investors with an extensive understanding of the legal technology solutions and services industry, and combining with DTI.”

Epiq will combine with its rival DTI after the sale.

The company’s pending sale grew out of a lengthy strategic review that was borne of investors’ complaints about Epiq’s financial performance in recent years. Standstill agreements, a battle to take control of Epiq’s board of directors and lawsuits followed.

Epiq’s announcement Wednesday said the company added three directors to its board, Jeffrey R. Galgano, Barry D. LeBlanc and Gregory M. Share. The election of each was supported by Epiq’s second-largest shareholder, St. Denis J. Villere & Co. LLC of New Orleans, which owns 13.2 percent of Epiq’s shares.

Mark Davis: 816-234-4372, @mdkcstar

  Comments