Two big Oregon legal technology companies are combining, with Beaverton’s Exterro buying Portland’s Zapproved in a deal worth “hundreds of millions” of dollars.

Little known outside the legal services industry, Exterro and Zapproved are among Oregon’s largest technology businesses. The combined company plans to retain all 131 Zapproved employees, giving Exterro a total staff of about 750.

“We want to be one of these amazing stories for the Portland entrepreneurial world,” said Exterro CEO Bobby Balachandran.

The two privately held businesses are occasional competitors that each help clients manage their online records. Zapproved specializes in helping companies track electronic information relevant to pending legal matters. Exterro has a broader range of services that helps businesses comply with regulatory requirements, manage data and preserve online privacy.

“Our customers are being asked to do much more with less in an increasingly complex world,” said Monica Enand, Zapproved’s co-founder and CEO. “Bringing these resources together makes sense, more so than ever.”

Exterro said it will have 157 Oregon employees when it completes the Zapproved deal, most of them splitting work time between home and the company’s offices. The bulk of the combined company’s workers will be outside of Oregon.

Oregon is home to a cluster of legal technology and regulatory compliance businesses. In addition to Exterro and Zapproved, the big players include Portland digital archivist Smarsh and Lake Oswego compliance monitoring company Navex Global. In 2017, Zapproved sold a majority stake to the investment firm Vista Equity Partners, which also owns a minority share of Navex.

Balachandran and Enand said they have known each other for years, crossing in professional circles and meeting periodically for walks or coffee to discuss their businesses’ common goals and challenges.

Last summer, when Exterro announced a new funding round that valued the company at more than $1 billion, Balachandran said he had a list of 20 prospective acquisition targets he was eager to pursue. This week, he said Zapproved had been near the top of that list.

“Bringing what Monica has done, what we’ve done at Exterro and combining that is going to be a big, big opportunity to both our customer bases,” he said.

The companies didn’t disclose the size of the deal, but Balachandran said it’s in the “hundreds of millions” of dollars. And he reiterated that he hopes to take Exterro public.

A former Intel engineer, Enand has become one of Oregon’s most prominent technologists since starting Zapproved in 2008. She serves on NW Natural’s board and was a member of the Oregon Investment Council until last year.

In the short run, Enand said she will remain with Exterro in an undefined role after the transaction closes to ensure “everything is set up for success.” It’s too soon to know what she might do next, Enand said, but she said she wants to spend some time reflecting on Zapproved and its legacy pursuing growth in Portland’s tech community and equity for the people working in it.

“It’s been an intense experience, that has brought me the most joy. More joy than I could have imagine, the relationships I have developed,” Enand said. “It’s a big part of my character and who I’ve become.”