Rhys Dipshan: Exterro Secures New Financing in ‘Pre-IPO Round’ Valued ‘Over a Billion Dollars’

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Extract from Rhys Dipshan’s article “Exterro Secures New Financing in ‘Pre-IPO Round’ Valued ‘Over a Billion Dollars'”

E-discovery and information governance software provider Exterro announced Tuesday it has completed a recapitalization and secured additional equity capital in a financing round led by Leeds Capital.

Exterro did not disclose the exact amount of the round, but the company’s CEO and president Bobby Balachandran told Legaltech News it is valued at “over a billion dollars,” which included both the equity financing and recapitalization. In addition to Leeds Capital, who first invested in Exterro in 2018, other participants in the round include Coller Capital and Glendower Capital.

Balachandran noted the new financing will be leveraged by Exterro to double down on its strategy of helping clients holistically deal with their data-related governance, risk and compliance (GRC) needs.

“We want to grow faster than we have,” he said, adding that the company intends to “turbo charge its innovation” by investing in its product, geographically expanding its footprint and talent, and executing a “very aggressive roadmap around acquiring companies.” As to what companies might be targeted in any M&A plans, he said that Exterro is “looking at other technology companies—we are looking at e-discovery, data privacy, the forensic side of investigation, and cybersecurity compliance.”

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