Symantec announced it has signed a definitive agreement to acquire privately-held Clearwell Systems, Inc., a recognized leader in the eDiscovery market. The acquisition of Clearwell will bring together the industry's leading eDiscovery, archiving and backup offerings to provide customers one of the most comprehensive information management solutions available.
2. Forward-Looking Statements
• This presentation contains forward-looking statements within the
meaning of U.S. federal securities laws, including expectations
regarding the closing of Symantec’s acquisition of Clearwell Systems,
Inc. and the integration of its products and technologies into
Symantec’s products and solutions, that involve known and unknown
risks and uncertainties that may cause actual results to differ
materially from those expressed or implied in this presentation. Such
risks include, among others, satisfaction of closing conditions to the
transaction, our ability to successfully integrate the acquired
businesses and technologies, and customer demand for the
technologies and integrated product offerings. Actual results may
differ materially from those contained in the forward-looking
statements contained in this presentation. Additional information
concerning these and other risk factors is contained in the Risk
Factors section of Symantec’s Form 10-K for the year ended April 2,
2010. Symantec assumes no obligation to update any forward-looking
statement contained in this presentation.
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3. What Are We Announcing Today?
• Symantec to acquire Clearwell Systems, Inc.
– Leader in eDiscovery software
– Revenue of 56 million for LTM ending March 31, 2011
• Purchase price of approximately $390M, net of $20M in cash from
Clearwell
– Funded with approximately $345 million in cash
– Issuing approximately $45 million of Symantec stock options
• Operations
– To be led by Deepak Mohan, SVP, Information Management Group
– Will be integrated into our archiving and backup group
– Products to be sold through Symantec’s global sales force and both Symantec
and Clearwell partner networks
• Transaction is expected to be 1.5 cents dilutive to non-GAAP EPS
during FY12 and accretive to FY13 results
• Expected to close during the September quarter pending regulatory
Hart-Scott-Rodino approval and other customary closing conditions
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4. Why Clearwell?
• Unprecedented rate of information growth creates a challenge for customers to backup,
manage, categorize and discover information
– Extends our information management leadership by delivering market-leading eDiscovery solutions
• Addition of eDiscovery expands addressable market opportunity
– eDiscovery is an attractive market, expected to grow at a CAGR of 14% to $1.7B in 2014
– eDiscovery is complementary and converging with the fast growing $2.7B archiving market
• Enhances Symantec’s ability to provide end-to-end information management
– Brings together the market leading products in eDiscovery and archiving
– Cross sell Clearwell products into Enterprise Vault installed base due to the longstanding integration
of Enterprise Vault with Clearwell products
– Future cross sell synergies with backup
• Existing go-to-market synergies
– Many joint delivery and service partners, leading to natural go-to-market synergies
• Strong Financials
– High growth and profitable business
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5. eDiscovery Growth Drivers
• Information growth and stricter regulatory requirements are driving higher costs for the
discovery process
– Customer spend is shifting from manual discovery services to automated electronic discovery
• eDiscovery provides rapid and accurate visibility to information required across the enterprise,
reducing risk and costs
• Beyond legal discovery there are additional users of eDiscovery such as HR, internal audit and
compliance
Forensics/
Legal HR Audit Compliance
Security
Compensation,
Civil, patent, & IP theft, Wrongful termination, Regulatory requests
options
criminal law inappropriate use harassment SEC, FDA, FERC
backdating
Electronically Stored Information (ESI)
Email Servers Storage Desktops File Servers SharePoint Cloud
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6. Addressable Market Opportunity
• Worldwide sales of eDiscovery forecasted to grow at a CAGR of 14% in 2014
• Expands our total addressable market opportunity with an end-to-end
eDiscovery solution
Total Market =$4.4B
09-13 CAGR = 20%
4,449
($ Millions) 3,770
eDiscovery = $1.7B
1,728
3,163 09-14 CAGR = 14%
1,503
2,635
2,195 1,296
1,803 1,117
985 Archiving =$2.7B
889 2,721 09-14 CAGR = 24%
2,267
1,867
1,518
1,210
914
2009 2010 2011 2012 2013 2014
HSM and Archive Software eDiscovery Software
Source: Graphic created by Symantec based on Gartner data source. Gartner Inc., Forecast: Enterprise Software Markets, Worldwide,
2008 -2015 1Q11 Update, Colleen Graham et al; Market Trends: eDiscovery Is a Buyer’s Market, Worldwide, 2010 Tom Eid December 8 2010 6
7. Clearwell at a Glance
• Recognized leader in eDiscovery market
– Clearwell is in the “Leaders quadrant” of
Gartner Magic Quadrant for eDiscovery
• Comprehensive set of eDiscovery solutions
– Won the “Network Products Guide Reader
Trust Award” for the best products and
services in eDiscovery in 2010
• Strong customer base
– 400+ customers
– 75+ partners and resellers
• Headquartered in Mountain View, CA
– International presence with office in
London, England
• Approximately 200 employees
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8. Clearwell Named as a Leader in 2011
Gartner Magic Quadrant for eDiscovery Software
The Magic Quadrant is copyrighted 2011 by Gartner, Inc. and is
reused with permission. The Magic Quadrant is a graphical
representation of a marketplace at and for a specific time period. It
depicts Gartner's analysis of how certain vendors measure against
criteria for that marketplace, as defined by Gartner. Gartner does not
endorse any vendor, product or service depicted in the Magic
Quadrant, and does not advise technology users to select only those
vendors placed in the "Leaders" quadrant. The Magic Quadrant is
intended solely as a research tool, and is not meant to be a specific
guide to action. Gartner disclaims all warranties, express or implied,
with respect to this research, including any warranties of
merchantability or fitness for a particular purpose.
This Magic Quadrant graphic was published by Gartner, Inc. as part of
a larger research note and should be evaluated in the context of the
entire report. The Gartner report is available upon request from
Clearwell.
Source: Gartner, Inc., Magic Quadrant for E-Discovery Software, Debra Logan, John Bace, May 13, 2011 8
9. Clearwell’s Comprehensive Product Portfolio
• Clearwell has four product modules that cover the entire eDiscovery lifecycle
• All capabilities are delivered as a software, in an appliance or as a hosted service
Lifecycle Reporting & Case Management
1 2 Identification 3 Processing, 4 Review &
Legal Hold Reporting
& Collection Search & Analysis Production
Allows IT and Legal Provides case
Enables Allows IT and Legal Provides legal
to rapidly and mgmt. capabilities
corporations to teams to easily professionals with a
accurately filter, like analytics,
automate and identify and wide range of
process, search, and lifecycle
manage their legal defensibly collect features needed to
analyze data in reporting, user
hold process and data from across the rapidly conduct
multiple formats mgmt, audit trail
minimizes risks enterprise e-discovery review
and languages to customers
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10. The Clearwell and Symantec Value Proposition
• It is 1600 times more expensive to review data than to store it
150 TB
50 TB
500 GB
Archive &
Discover & Analyze & 5-10 GB Production
Store
Preserve Review
Symantec’s Enterprise Vault
Clearwell’s eDiscovery Solutions
End-to-End Archiving and eDiscovery with Enterprise Vault and Clearwell’s Products
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11. Clearwell Sales and Go-To-Market
• Clearwell products are directly sold to Clearwell
enterprises and law firms Sales Mix
– Direct sales are segmented into enterprise,
federal, international and channel teams
– Operating in multiple geographies: US, Canada
and UK International
20%
• Clearwell has 75+ partners selling their
technology
– As resellers to enterprises US
80%
– As a hosted service
– As part of consulting services or a reactive
discovery response engagement
• Existing joint customers and partners
– A growing list of common delivery and service partners
– Numerous customers benefitting from integration of Enterprise Vault with
Clearwell products
– Leverage our global sales and go-to-market footprint to sell Clearwell’s
products
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12. Summary
• As unprecedented rate of information growth creates a
challenge for customers, Symantec will extend it’s information
management leadership by delivering market-leading
eDiscovery solutions
• Expand Symantec’s addressable market by positioning the
company as a leader in enterprise eDiscovery software growing
at a CAGR of 14%
• Brings together the industry’s leading archiving and eDiscovery
solutions which are already integrated
• Cross sell Clearwell products into Enterprise Vault installed base
and realize future cross sell synergies with backup
• High growth and profitable business
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15. eDiscovery Workflow
• Electronic Discovery Reference Model (EDRM) is a standard framework
for describing steps in the eDiscovery process and evaluating
eDiscovery products and services
Information Management Identification Preservation Processing Production Presentation
Preparing “electronic Locating potential Ensuring ESI is protected Reducing the volume of ESI Delivering ESI to others Displaying ESI before
house” for eDiscovery sources of ESI; from inappropriate alteration and converting for more in appropriate forms & audiences, especially in
events determining scope, or destruction suitable review, analysis using appropriate native forms, to elicit
breadth, depth Collection Review delivery mechanisms further info or persuade
Gathering ESI for further use Evaluating ESI for relevance
in the e-discovery process and privilege
(e.g., processing, review) Analysis
Evaluating ESI for content &
context, including key
patterns, topics, people, etc.
Source: EDRM (edrm.net) 15
16. eDiscovery Landscape
• Clearwell’s leading eDiscovery capabilities coupled with
Symantec’s leading archiving and backup products will provide
one of the most comprehensive solution
+
Information Mgmt
Identification
Preservation
Collection
Processing
Review
Analysis
Production
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