Lexitas is a litigation support services provider headquartered in Houston, TX focused on deposition services and record retrieval services. Trinity Hunt Partners (THP) first met with DepoTexas (later to become “Lexitas”) in 2013 in connection with its thematic focus on the legal process outsourcing (LPO) industry. At that time, DepoTexas was focused on growth within Texas through small tuck-in acquisitions and had no significant need for a capital partner. As time progressed, the founders (Mike Clepper and Zack Miller) decided that the time was right to pursue a larger acquisition plan and to expand nationally. Given Trinity Hunt’s domain expertise in the LPO space, its Value Creation Plan (VCP) toolkit, and its extensive add-on acquisition experience, the founders entered into a partnership with Trinity Hunt in 2015 to create a national LPO leader.
And that’s exactly what we did. Together, Trinity Hunt and the management team developed and implemented a VCP that involved, among other countless initiatives: (1) development of an industry-leading M&A team with streamlined templates, processes and resources to source, execute and integrate 10 add-on acquisitions, (2) significant back office process improvements to position the Company for growth; (3) dramatic expansion of sales and marketing capabilities to drive demand; and (4) pricing optimizations to improve margins. Veteran professional managers Gary Buckland (CEO/COO), Stan Mason (CFO), and Aaron Brown (SVP Sales/Marketing) were also brought onboard to provide the experience needed to drive and manage the Company’s dramatic growth. Additionally, the Company expanded its geographic presence from its original Texas base to most major cities across the country. In connection therewith, the Company re-branded to “Lexitas” to reflect its broader capabilities and national geographic reach. Trinity Hunt also led Lexitas’s expansion into the records retrieval business, which at exit made up almost half of the Company’s revenues. Importantly, the Presidents of all 10 add-on acquisitions remained with Lexitas through Trinity Hunt’s exit, emphasizing the mission-critical importance of “Partnership” to our collective strategy.
The result? DepoTexas grew its revenues from $20 million to $120 million in 4 years and, in 2019, the Company was sold to Apax Partners, generating an extremely successful outcome to investors.
In retrospect, Mike and Zack, the original founders, would underscore how important “Partnership” was to our relationship and our dramatic investment success. That is why so many our portfolio company founders are now investors (in fact… our Partners) in our private equity funds!