Diversified acquires Active Data Services
Diversified Information Technologies, a provider of document and information lifecycle solutions, has acquired Active Data Services (ADS), which outsources business processes. Financial terms of the deal were not disclosed.
Scott Byers, CEO and president of Diversified, noted that ADS offers imaging, print, electronic billing and customer communications services that Diversified does not. The deal combined those services with Diversified's record management, storage and processing, document imaging, workflow automation and consulting services.
“This allows us to offer new services to our clients and complete the lifecycle that we've always had pieces of,” he said.
ADS' geographic base — three offices in the Raleigh-Durham, NC area — also filled a major service gap for Diversified, which had 18 offices nationwide but none in the Carolinas. Diversified also has three offices in India.
Kenneth Eller and Peter Harvey, former CEO and CFO of ADS, respectively, remain on staff as consultants. Peter Ransome, former CMO of ADS, now serves as regional VP of channels for Diversified. He said the ADS brand will be absorbed into that of Diversified.
Ransome added the deal was in the works for about six months, and the final agreement was signed October 8.
“It was a good fit because our company cultures are very similar,” Byers said.
Both companies had clients in the financial services, insurance, healthcare and government sectors, but there was no overlap, according to company representatives. Byers could not name specific clients, citing confidentiality agreements. He did say, however, that Diversified works with three of the top 10 companies in both life insurance and financial services, and two of the top five health insurance providers. ADS' clients include BlueCross BlueShield of North Carolina, College Foundation and Allscripts, according to a statement from Diversified.
Diversified's 2008 revenue was approximately $35 million and ADS' was approximately $15 million, according to a statement.