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Legal Careers Lose Their Allure, Drop to Dentistry Status Posted Jan 7, 2008, 05:52 am CST By Debra Cassens Weiss College grads who want wealth and social status are passing up law and medicine for careers in investment banking. A career at a hedge fund or private equity firm can offer financial rewards that outpace earnings at even the biggest law firms. Partners at the nation’s largest 100 firms made an average of $1.2 million in 2006, but many senior investment bankers will take home an average of $2.25 million to $2.75 million in bonuses and salaries, the New York Times reports. But even more important than money are the glamour, control and quick path to financial rewards in investment banking, according to the article. Lawyers no longer enjoy the prestige they once held, and the quest for billable hours has taken away the notion of law as a noble profession. Doctors and lawyers “have slipped a notch in social status, drifting toward the safe-and-staid realm of dentists and accountants,” the story reports. The change is reflected in the number of students applying to law schools. The number of applicants dropped 5.2 percent in 2005 from the year before, and another 6.7 percent in 2006, when 83,500 applied to law schools.

Bar Association Enters the 21st Century Lawyers have been using the Internet for a decade, and even the most unsophisticated consumers have had Internet access at home for at least five years. In this context, a directory that would enable consumers to find lawyers online should have seemed like a logical project for bar associations -- which purport to serve the public by helping increase access to law. The bars did little to provide lawyers with ways to list themselves online and, consequently, a few months ago, one company -- Avvo -- stepped in to fill this void  and, in doing so, attracted a controversial response.

Autonomy Buys Zantaz By Phineas LambertThe DealJuly 19, 2007 Enterprise infrastructure software maker Autonomy Corp. PLC on Tuesday, July 3, agreed to buy U.S.-based archiving company Zantaz Inc. for $375 million to exploit the growing electronic discovery market. Pleasanton, Calif.-based Zantaz provides content archiving, electronic discovery products and software to enable organizations to retain and retrieve unstructured digital information, while Autonomy sells the platform for accessing such information. Zantaz generated earnings before interest, taxes, depreciation and amortization of $5.2 million on revenue of $100 million for the year ended Dec. 31. In the 11 years since it was founded, its VC backers have included General Atlantic Partners LLC, Athena Technology Ventures, Red Rock Ventures, ComVentures, Pyramid Technology Ventures, Geneva Venture Partners and Novus Ventures. The purchase will be Autonomy's largest since it bought data retrieval software maker Verity Inc. for $507 million in cash at the end of 2005. "We have been greatly impressed by Zantaz's products and will be continuing to develop and support the whole range," said Autonomy CEO Michael Lynch in a statement. "Our combined solution will be unique in offering our existing 17,000 customers end-to-end information rich risk-management solutions." Cambridge, U.K.-based Autonomy said the acquisition will be partly funded through the placing of 12.7 million shares and a term loan. On completion, Autonomy said it expects to have about $75 million in cash on its balance sheet. Shares in Autonomy were up almost 9 percent, or 64.5 pence, to 792.5 pence in London, giving the company a market cap of £1.67 billion ($3.36 billion). The announcement coincided with news that Autonomy expects record second-quarter 2007 results, with pretax profit and revenue ahead of the top end of analysts' forecasts. Derek Brown, an analyst at London-based Seymour Pierce Ltd., noted that the market for electronic discovery has been fast-growing since the revised Federal Rules of Civil Procedure require businesses to make readily accessible all relevant information from unstructured data like e-mails. "The deal provides a unique offering in the market: a hosted service for archiving combined with the applications for customers to choose which route to go by," Brown said. "There's a good cross-selling opportunity here." Autonomy expects the acquisition to be earnings accretive in the first six months and generate costs synergies of about $25 million per annum. Tax loss carry-forwards will be assumed with a net present value of about $45 million, it added. Steve King, the target's CEO, will keep his position as chief executive of the Zantaz division of Autonomy. Deutsche Bank AG acted as financial adviser to Autonomy. The deal, subject to regulatory approvals, is expected to be completed by August. Zantaz has agreed to pay a $10 million breakup fee to Autonomy, should it terminate the agreement.