By MATT CHANDLER
Buffalo Law Journal

The field of litigation-support vendors locally became a little bit smaller last week.

Avalon Document Services announced the acquisition of an area competitor, Exacta Legal Documents, in a move described as formalizing an existing relationship between the two litigation-support companies. The businesses are two of a half-dozen or so companies with Western New York locations that focus on document-management and electronic-discovery services.

Though Avalon first looked into the possibility of acquiring Exacta in the summer of 2008, J.P. Midgley, managing partner at Avalon's Buffalo office, said management felt the time wasn't right, and only last month revisited the idea. The transaction was finalized Thursday.

Midgley said he expects the acquisition to allow his company to branch out in both "pre-litigation preparedness and trial services."

Law firms often turn to outside vendors to help them manage document scanning and storage, and the market for litigation support has grown steadily as a result of rule changes that went into effect three years ago regarding the sharing of electronically stored information in civil litigation.

"The big thing for us is that (Exacta) had a much longer-standing tradition of being a great service provider in Buffalo, while we are the new people in town over the last year and a half," Midgley said. "I am hoping it opens some doors and allows us to work with some people that they have had those longstanding relationships with."

Scott Rothschild, Buffalo/Rochester sales manager for Ikon Office Solutions Inc., said the acquisition does not significantly change the litigation-support market locally.

"With the number of law firms in this region and the need for e-discovery services and litigation still on the rise, there is plenty of opportunity for everyone," he said.

Avalon employs more than 90 people in offices in Buffalo, Rochester, Syracuse and Utica. Exacta had a staff of four operating out of its downtown Buffalo office. Midgley said those employees were relocated to Avalon's offices and have been retained.

Avalon is the region's largest litigation-support company, based on number of Buffalo-area employees.

Midgely said the company hopes to keep expanding.

"Down the road we'll probably look at things," he said, "and we are always open to any mergers or acquisitions that could benefit the company."