A Morrisville company that helps businesses convert paper documents to digital form has been bought by a Scranton, Pa.-based document-management firm.
No, this isn't an episode of TV's "The Office."
Active Data Services, which provides document and billing services to health-care, insurance and financial customers, was acquired by Diversified Information Technologies of Scranton -- where the TV comedy is set.
Most of ADS' 105 employees will stay in Morrisville but shift to the new company. "This isn't the typical slash-and-burn type acquisition," said Diversified CEO Scott Byers.
The deal is part of Diversified's strategy of expanding its business in the "Maine to Miami corridor" and gives the company a strong foothold in the Triangle, Byers said. ADS' clients include Blue Cross and Blue Shield of North Carolina, College Foundation, AICPA and Allscripts-Misys Healthcare Solutions.
Terms of the deal weren't disclosed. Diversified had 2008 revenue of about $35 million and ADS had about $15 million.
ADS was founded in 2002 when CEO Kenneth Eller led a leveraged buyout of the Triangle operations of a bankrupt Michigan company.
Eller will stay with the new company for two years as a consultant. When he started ADS, the plan all along was to find a buyer within 5 to 7 years, he said.
The combined company expects to see significant future growth, fueled mostly by health-care reform and the push to electronic medical records, Eller said. "That will be a powerful ingredient for this company."