Xerox Corporation ( XRX - Analyst Report ) has been on the move over the last few weeks. After signing a wave of new deals, the company has now acquired Lateral Data, a provider of e-discovery technology, in a deal worth $30 million. The e-discovery technology deals with locating, searching and securing data, which is used as possible evidence in regulatory and legal affairs.

The deal will strengthen Xerox’s standing in the rapidly growing e-discovery market, as the acquisition complements the services provided by Xerox Litigation Services, which now houses the acquired Lateral Data. Xerox has made the right move to expand its footprint in the lucrative enterprise e-discovery market, which is projected to be worth $1.6 billion by next year.

Viewpoint, Lateral Data’s e-discovery software, provides solutions in a simplistic and cost-effective manner to corporate legal departments and law firms. The software enables users to control the complete e-discovery process through a single application, bringing down costs, saving time and doing away with the need for buying different products and services from several vendors.

Moreover, the software’s flexibility will enable Xerox to provide better services to its clients. Viewpoint is capable of collecting, analyzing, reviewing and managing data from different sources such as email, desktops, social media and cloud-based email and business collaboration platforms like Google Docs and Microsoft SharePoint. Users can choose to adopt a cloud-based solution, a do-it-yourself solution or a customized combination of both.

With such features under the hood, it is not surprising that Lateral Data provides services to numerous corporations around the world. Its clients include Fortune 500 companies and famous law firms such as Fenwick & West LLP, Quinn Emanuel, Kramer Levin and consultancies such as Grant Thornton. This makes the deal even better as Xerox will now have access to Lateral Data’s illustrious clients.

We currently have a long-term Neutral recommendation on Xerox. The company, which competes with Canon, Inc. ( CAJ - Snapshot Report ) and Hewlett-Packard Company ( HPQ - Analyst Report ) , maintains a Zacks #3 Rank, which translates into a short-term (1 to 3 months) Hold rating.