Microsoft Looking To Buy Text Analysis Startup Equivio
What was originally labeled as a simple rumor, turned out to be true when Microsoft signed of letter of intent, making its plan to buy the Israeli text analysis company Equivio clear. The deal could be worth somewhere around $200 million, but at the moment there is no official confirmation on the matter.
Founded by Warwick Sharp, Amir Milo and Yiftach Ravid, Equivio is a company that focuses on text analysis products for electronic discovery and legal tasks. Basically the Israeli based business uses machine learning algorithms to create applications which can gather and bundle together relevant texts from a very large amount of documents. Besides a preexisting collaboration with Microsoft, Equivio also has other high profile clients such as the US Department of Justice or the Federal Trade Commission.
In terms of how will this transaction benefit Microsoft, one can assume that the intra-company document search and legal compliance services could really benefit from the collaboration. Furthermore, the IT giant has been looking to acquire companies located outside the US in order to spend some of its external cash, so the Rosh Ha’Ayin based company seems to fit the bill perfectly.
So far, both Microsoft as well as Equivio have refused to make any official comments on the matter. However, according to sources close to the deal, the transaction may be concluded within just a few weeks unless other bidders step in.
Source: The Wall Street Journal.
