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Active Data of Morrisville bought by Scranton firm

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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."

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About the blogger

Assistant Business Editor Alan M. Wolf joined the N&O in 1999 covering the business of health care. He became an editor in 2001, and helps oversee the paper's daily business coverage and Sunday Work&Money section. He lives in Clayton with his wife and two children. Reach him at 919-829-4572 or e-mail him.