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Acquisitions – and here's another one…

Yes, we know it is late Friday afternoon UK-time but it's still morning in America (well at least on the West Coast) and here is news of yet another acquisition…

Aderant today announced that it has acquired RainMaker Software, a well-respected company with more than 40 years of legal industry experience and developer of financial and practice management software for mid to larger sized law firms. RainMaker Software, founded in 1969, is a privately held company based in Blue Bell, Pa. Aderant will continue to support and enhance the RainMaker financial management products used by nearly 300 firms across the United States, Canada, and Latin America.

“With this latest acquisition, Aderant further strengthens our commitment to the legal and professional services market,” said Aderant CEO Chris Giglio. “The combined market share, industry expertise, and comprehensive suite of proven products and services now under the Aderant umbrella truly make us the go-to partner for firms worldwide.”

“This is an exciting time for RainMaker clients and employees,” said James Hammond, vice president of RainMaker Solutions (formerly president of RainMaker Software). By becoming part of the Aderant family, our clients will gain access to new products, innovative technology, and the highest levels of service and support.”

Comment: There are three issues here… The first is that it is going to be business as usual for Rainmaker sites – although they now get to benefit from being part of a far bigger corporation and there are clearly great synergies with the Client Profiles and CompuLaw product sets that Aderant acquired in August. The second factor is that Aderant is continuing to build its footprint and confirm its position as one of the global players in the global legal tech space – keeping up with the likes of Thomson Reuters and LexisNexis. And, finally, it demonstrates that the trend for consolidation is continuing and that the mid-term prospect for smaller independent vendors is either to get into bed with a larger partner or else risk being relegated to the second division of legacy/sunset players, for whom the light at the end of a tunnel is a train coming to run them down.

9 replies on “Acquisitions – and here's another one…”

Let's hope they make a better fist of their consolidation play than either Lexis (worldwide) or Iris (in the UK) or the American firms are going to have a tough time.

Dear Charles,
You may be right with the second part if you commentary about the smaller independent vendors. But with fewer companies (TR, Aderant, Lexis, etc) getting bigger and bigger, they tend to loose the nimbleness that allow them to innovate if they don’t get trapped on the bureaucracy . Hopefully there is here an opportunity for vendors in legal technology to come up quickly with innovative products that at the same time are creatively priced.

Let's hope for the sake of their clients they do a better job of 'maintaining' the platform than they did with CLO and Keystone which they purchased and shortly afterwards killed off forcing their clients to move to CMS/Expert or go to market. Mind you, the sales team at Lexis and Elite will be pleased if they continue their form – it will mean lot's of disgruntled clients coming to market some time in the next few years.

Really don't see the value of bring rainmaker into aderants product stable. Expert is perfectly suited to mid tier market. Surely it is also a distraction to core sales? VC's looking to add value with sale in mind I wonder?

Buying up other vendors allows ADERANT to focus on and promote those products and divert us away from the fact that their flagship Expert has not really moved forward in the past 2 years, the golden gate is still firmly locked for many firms…

Would agree it's not moved on much, which is my point about suited to mid tier. Surely aderant are prime pickings for lexis to obtain the pms client base to move to dynamics too???

Do Aderant have anyone in sales to sell rainmaker?? Surely a doubtfully purchase if they can't shift expert. No European wins for a while??

When a pms vendor buys another pms vendor and blows on about the “increased value and synergy that this union will bring” you can be sure it is complete bunk for the aquired company's install base. All of Rainmakers customers will be unhappy with the move, particularly after Aderant merges (sacks) their development and support teams, and while each Rainmaker customer was a potential Aderant new customer before the acquisition none of them will be after the acquisition as each of these customers will register their dissatisfaction with Aderant for upsetting their cozey relationship with Rainmaker. They will all go to market, and sooner now than later due to acquisition, and they will not include Aderant in the selection no matter how attractive Aderant makes the offer to “upgrade”. I would bet my bottom dollar on it. The sun has already set on Aderant – just look to their recent sales record. It is a pity.

A sound theory. We need only to look back to the acquisition of Javalan a few years ago to support it.

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