Lexis Nexis aquire UK's Axxia - how things will shape up - a note from Lexis Nexis

Lexis Nexis present answers to your questions

The strategy

How will the company be structured post-acquisition?

Axxia will join the UK Practice Management portfolio, part of LexisNexis’s Global Practice Management solution line.

Kate Holden will oversee the Global Practice Management portfolio with Edouard Tavernier driving the strategy. Stuart Holden will continue to oversee the Axxia portfolio working with
Dan Marshall, who will be directing all operations across the UK Practice and Productivity
Management business.

Will Axxia be run as a separate business or integrated with LexisNexis?

Axxia will be fully integrated with the LexisNexis business within the next six months.

What is LexisNexis’ mission?

To help our customers to become more efficient, productive and profitable through the provision of integrated workflow-based solutions enhanced with relevant content.

Why has LexisNexis acquired Axxia?

LexisNexis is committed to delivering a solutions strategy offering product and service combinations that address customers’ specific needs and fit into their existing workflow, to enhance productivity and profitability.

As the leading integrated solutions and back office provider for medium-sized law firms, Axxia
has an installed customer base of 220 law firms and over 20,000 users. This makes it an extremely attractive proposition for LexisNexis to combine with its existing portfolio for medium-sized law firms. The acquisition of Axxia will accelerate the delivery of content-enabled workflow solutions for medium-sized law firms.

What will happen to the Axxia corporate brand? What will happen to other brands, such as dna* and Artiion?

To provide the most consistency and clarity in our communication with customers, the company will immediately fully align with the LexisNexis corporate brand.

Axxia will become the umbrella name for a product family within the UK LexisNexis Practice Management portfolio. Product brands acquired from Axxia will include the Axxia name (for
example, "Axxia Artiion", “Axxia dna*). The Axxia product family will be treated in the same
way as the other product families within LexisNexis UK - Butterworths, Tolley, Visualfiles etc.

Does LexisNexis plan to acquire other companies?

We are committed to providing our customers with leading practice and productivity management solutions and will continue to explore all avenues that may help us achieve this
goal.

LexisNexis acquired Visualfiles more than a year ago. Isn’t Axxia operating in the same space?

Although both businesses serve similar organisations, the product portfolios at Axxia and Visualfiles are extremely complementary. Both Visualfiles and Axxia hold leading positions
with their respective offerings. Visualfiles has a first class reputation for its case management
software in both mid and large law and Axxia’s key strength lies in its integrated front and back office solution. With both Visualfiles and Axxia in the LexisNexis stable, we can offer our customers an unparalleled wealth of knowledge and experience across a broad range of markets. This will significantly strengthen our ability to deliver the leading portfolio of integrated and open solutions that satisfy the widest range of customer needs.

Does this acquisition change existing relationships with 3rd party suppliers?

No, we are delighted to be in a position to offer our customers the widest possible choice. Our policy of developing both integrated and open solutions means that we will continue to work
with a wide range of suppliers to satisfy the differing needs of our customers.

Products/technology

What will be the technology platform resulting from the combination of Axxia, LexisNexis and Visualfiles?

LexisNexis currently operates many different technology platforms through which we deliver a
broad range of solutions and capabilities to our clients. As we develop new solutions within our Practice Management portfolio, we will work closely with our clients to select whichever technology platform is most appropriate for their particular needs whilst ensuring that our underlying architectural decisions adhere to key principles:

• Ability of our solutions to integrate with a broad range of 3rd party systems

• Use of mainstream, future-proof technologies

• The provision of a clear evolution path for existing LexisNexis customers

Over time, the mix of technologies we use will evolve to suit the changing needs of the market. Rather than be led by technology, we will be driven by an overriding desire to deliver compelling solutions that genuinely improve the productivity and profitability of our customers.

How will the product portfolios be integrated over time?

LexisNexis will accelerate the execution of existing product roadmaps whilst over time developing a range of new offerings through the combination of LexisNexis and Axxia
capabilities. Integration between Axxia and LexisNexis products will take various forms, from
the launch of standalone product modules to the development of fully integrated suites of back office and front office solutions. Examples of such integrations include:

• Strengthening the integration between Visualfiles case management solutions and the Artiion back office system
• Developing integration between dna* and best of breed LexisNexis applications (e.g. InterAction)
• Combining dna* with LexisNexis Legal and/or Risk & Compliance content to create distinctive value propositions for legal practitioners

Customer Support

What support benefits can customers expect from the combination of Axxia, LexisNexis and Visualfiles?

We aim to deliver “Best in Class” in all aspects of the customer experience and will strive to
continuously improve all aspects of our customers’ contact with us – content, user interfaces,
customer services, billing, etc. We are determined to accomplish unparalleled support and delivery and have committed significant investment in order to achieve this.

Both LexisNexis and Axxia have developed solutions that, following the initial system implementation, enable business users without an IT background to create and maintain
complex applications with the minimum of tuition. This approach protects customers’
investment and maximizes profitability.

On a broader level, both LexisNexis Visualfiles and Axxia share a passion for innovation and
a commitment to developing and delivering customer-driven solutions.

Will there be any changes to my account manager?

We will evaluate the ways we interact with our customers on an ongoing basis to ensure we are delivering the highest quality relationship management. Customers will be notified if there are any plans to change the way their accounts are managed.

Whom should customers call for product support?

We will be working to quickly align our infrastructures, including our customer contact points.
Meanwhile, customers should continue using the existing contacts, and we will ensure enquiries are dealt with by an advisor who can handle their issue.

Whom should customers call for invoice, statement or payment queries?

We will be working quickly to align our billing infrastructures, but at present customers should
continue to use their previous Customer Support team. Any changes to the contact points will
be communicated to customers in advance.

For further information, please contact your account manager or for integration enquiries:

Gunes Sahillioglu
LexisNexis
gunes.sahillioglu AT lexisnexis.co.uk
+44 (0) 77 99 62 16 89

Saturn27 launch

An independent consultant, not aligned or reselling any vendors products, launches in London. (Saturn27).

Santa and the tech vendor

Whilst talking to vendors at Legal Tech NYC 2008 and hearing their stories, which are re-told with vigour and enthusiasm each year, I was struck by how similar this moment was to our early childhood. As your Mom told you about sleighs, reindeer and Santa, your friends in the playground dis-illusioned you and called you a fool for believing in such silly things. Over the years vendors have had their up and down cycles with R&D, but inevitably bounce back and each time they ask us to 'believe' again (and again), that software like Santa will make all your law firm dreams come true.

We want to believe: we like our vendors, but I guess, it is up to you to decide if you believe in Santa or what your playground buddies say.

Tech-philanthropy

Client Profiles, who are Atlanta based, are soon to launch the CP Foundation and aim to 'partner' with law firms to raise $2.5 million for charitable causes including education programmes in Georgia. Their drive will be to do deals with law firms with a negotiated percent going to their CP (Client Profiles) Foundation.

Running the CP Foundation as a not for profit, Whit McIsaac the CEO of Client Profiles, plans to raise the quality of Georgia education and its ranking, which currently sits at number 49 out of 50 compared with Atlanta which is ranked as one of the top spots in the country for education.

Client Profiles is already working on software deals with clients at discount costs to help Californian lawyers working with death row inmates.

Whit was inspired after hearing a CSR talk at Clifford Chance, who are following or mirroring their clients, like UBS and Credit Suisse in matching funds that employees give to charity to help their local communities.

Client Profiles grew 29% in 2007 and Whit believes their Microsoft alliance has helped them really reach the top. "They have 20,000 sales people and 4,500 partners." He points out, highlighting their capacity for sales. Client Profiles have made great strides in the UK market also recently partnering with well known reseller and consultant TFB.

http://www.clientprofiles.com/

Also see my article on http://www.probono.net/ on this or the Microsoft professional site.

The soft economy

George I. Rudoy, the Director of Global Practice Technology & Information Services, who by his own admission has a long job title, works at Shearman& Sterling LLP in New York. Just back from San Francisco, he has a schedulethat would barely allow most of us to breathe. Speaking at Legal Tech next week, he says his theme will focus on the newage of legal technology. “We might already be in the middle of it,” he says laughing. The new age for legal services and law firms will or has arrived because there is a realization, he says, that technology is an absolute must in law firms. “It’s not just your generic technology like DM or emailsystems, but more specific technology for the business of law.” George saysthere is a new notion. “People need to be both technologists and businessanalysts, as well as understand end deliverables. We came up with the ideaof the Head of Practice Management, which fits with some firms but notothers, so it may get refined.” He thinks there is much more to it than isolated litigation support, library or KM functions. “It’s a combined effort of technologists, ex-legal assistants who became technologists and‘recovering attorneys'. These individuals appreciate the challenges and thedeadlines and tend to be more outward looking.” George paints a scenariowhere lawyers won’t have to search for solutions by contacting different departments around the firm, but instead have someone like the Head ofPractice Management analyze their business problem, develop a strategy,coordinate departments, and carry out the solution. “Tell me what service or solution you want and I will translate that into a vision.” He confirms.“It’s not just about a liaison; it's more than that. We sit in with theattorneys and attend their 'business pitch' meetings to highlightcapabilities like speed of service, deliverables, and cost management toclients. Attorneys are comfortable with the idea that we participate incase discussions, and it gives us an opportunity to give each case theproper assessment and consult on the use of technology it requires.”George says he would typically expect to deliver ‘the full servicepackage.’ “Although the idea isn’t new, I believe we, the technologists,should work very closely with the legal assistants. Some firms evendecided to merge the technologists and legal assistants under the umbrellaof Practice Management. At the end of the day, we must be a businessorientated group that is strongly aligned with marketing and business development initiatives.” He says the idea is picking up steam, and more firms are appointing directors or chief executives of practice management.At this time, he says there are no more than ten such people in the world,with only four or five being officially recognized as Heads of PracticeManagement. I asked if it means the techies should get MBA’s, but hedoesn’t think it is essential. “We are business savvy and earn our workingMBA’s by being close to the economy of the law firm.” He suggests the realskill is in being able to understand how to help a client beyond supporting a case. “You can see how it is put together. I go along to client pitchesthese days and have an opportunity to tell our clients that Shearman attorneys are much more efficient and effective in delivering their legalservices because they are strong users of technology. No two pitches arethe same so I focus on understanding the client's unique business needs toget their full attention.” George says this is a good way to differentiateShearman & Sterling from other firms competing in this space.George believes today's legal technologists even have an opportunity toprovide some of the solutions for the economic problems currently beingexperienced in the USA. “It’s more than evident that we are in the middleof a recession. We’ve already seen an AmLaw 100 law firm recently lay off asignificant number of attorneys, and the others will most certainly follow.The more progressive thinkers have already started to downsize, which couldprove to be crucial. In past down cycles, the litigation and bankruptcycase load arrived to balance the books. However, this time it is nothappening yet, or, according to some sources, will not happen at all. The government is in rescue mode, so not only is transactional work down butthe bankruptcy work isn’t appearing, and companies save money and settlelitigations rather than go to trial.” This highlights how difficult it may eventually get for law firms. “The current economic conditions might influence the way that legal services are delivered, as well as the degree of technology used to augment these services in order to stay competitive.It will influence not only the choice of internally used products, but also creates an interesting environment for the industry vendors. We can make adifference with clients with improved technology, but vendors are going tohave to be sensible; they can’t just keep raising their prices. "If I have a department of twenty people and little work in the pipeline, the first answer isn’t to lay off staff that took significant resources to hire. We may get a new case the next day but I can’t buy all the necessary softwareon the fly. However, if I have a relationship with a vendor who could workin the way most suited for case needs and be hired for the duration of thecase, then that is what I am going to do.”George doesn’t hold out much hope that the question of technology helpingattorneys during difficult economic times will get much air time at LegalTech and other Legal Technology events because he says it takes time formajority of people to catch on. “I spoke about Unicode compliance andcross-border document collection challenges for more than a year beforeothers picked up on the notion.” He stresses the point. “But I hope this one will be recognized fast - technology will help firms in tough times. It will help win and keep clients if you can say you apply technology againstthe practice of law to stay effective and efficient, especially in fiscally challenging times.”