Epiq Systems Agrees to $627 Million Buyout

Legal software company Epiq Systems Inc. has agreed to be taken private in a $627 million buyout deal, ending months of merger speculation.

In a regulatory filing Wednesday, Epiq said it agreed to be acquired by private-equity firms OMERS Private Equity and Harvest Partners LP that values the Kansas City company at $16.50 a share and represents a 14% premium over Tuesday's closing price. The price tag is a 45% premium to where the stock was trading before deal speculation resurfaced earlier this year.

The buyers intend to merge Epiq with DTI, a legal process outsourcing company that provides services to law firms, corporations and governments around the world. DTI has been working to grow its own platform, last summer buying Merrill Corp.'s legal solutions business.

Epiq's deal follows months of speculation that the company was shopping for a buyer. In February, media reports indicated that a sharp drop in the firm's share price was reigniting potential buyers' interest, about a year and a half after Epiq had said it was exploring strategic alternatives.

As part of the agreement, Epiq is on the hook to pay a $15 million termination fee should it nix the deal.

Shares in the company, down 14% over the past 12 months, were inactive premarket.

Write to Lisa Beilfuss at lisa.beilfuss@wsj.com

(END) Dow Jones Newswires

July 27, 2016 09:45 ET (13:45 GMT)

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