Diversified Information Technologies has been acquired by a U.K. firm, EDM Group.
Scranton-based Diversified, which has been growing itself through its own acquisitions, will become EDM America. EDM is owned by the Lloyds Development Corp., a private equity group connected with Lloyds Bank Group.
Diversified Chief Executive Scott Byers said the acquisition will not change the company's presence or level of employment in the area.
"This will not have any impact on our operation, but it will give us the ability to add more breadth, depth and talent," Mr. Byers said.
The purchase price was not disclosed. Diversified was solely owned by company founder Clifford K. Melberger, Mr. Byers said. The Diversified executive team will remain in place, with Mr. Byers as chief executive of EDM America. He will also have a seat on EDM Group's board.
Greater Scranton Chamber of Commerce President Austin Burke said he hopes the acquisition sets the stage for additional growth for a company that has been one of the largest downtown employers.
"Diversified has been a great employer and a successful operation," he said.
Mr. Melberger founded the company in 1981 as a document storage service in West Pittston. The company made the transition from bankers' boxes and metal shelves to digital scanning and computer back up. After a fire struck its facility in 1997, Diversified relocated to Scranton, moving into the former Globe Store. In recent years under Mr. Byers' leadership, the company had grown by acquisition, buying smaller companies in North Carolina and New Jersey. In 2010, published reports showed the company with revenue of $51 million and employment of 800 in facilities in several states. Present employment in Scranton is about 300.
Mr. Byers said the industry had been globalizing along with commerce. Clients expect their document preservation service be handled by one company rather than several.
That trend pushed Diversified toward an acquisition, he said.
Contact the writer: dfalchek@timesshamrock.com