Diversified Information Technologies will have one of the world's largest banks behind it as the Scranton-based data management and security company transitions to new ownership.
After making acquisitions in recent years and expanding its reach nationwide, Diversified was acquired two weeks ago by EDM Group. EDM is owned by Lloyds Development Corp., an investment unit of London-based Lloyds Bank Group.
The Banker, a monthly publication of the Financial Times of London, ranked Lloyds as the world's 20th largest bank by assets in 2011, with $1.5 trillion in holdings.
"This was a great solution," Scott Byers, president and chief executive at Diversified, said as he discussed the transition in his office at the former Globe Store building in the 100 block of Wyoming Avenue. "We now have a stronger company, a bigger company. We have a stronger financial reach and we are growing."
Diversified, which began as a document warehouser in the early 1980s, has evolved into a national leader in data and records maintenance, imaging, document destruction and compliance services. It also provides printing and mailing, work-flow assistance and other services.
Diversified counts some of the nation's largest financial service companies, insurers, hospitals and health care businesses among its clients. The sale price was not disclosed.
EDM, which provides similar services in Europe, approached Diversified about the acquisition in September, Mr. Byers said.
"They came and chose us to make their presence in the United States," he said. "It couldn't have been a better match."
Clifford Melberger, the West Pittston businessman who founded Diversified and moved it to Scranton in 1997 after a fire destroyed its West Pittston headquarters, said the EDM acquisition assures a healthy future for the company.
"They are going to operate it as a separate, wholly-owned subsidiary," Mr. Melberger said in a phone conversation. "Everybody who is in their position can stay in their current position. That's a wonderful thing. There's a bright future ahead."
The separate operation of Diversified's business in the United States was critical to the sale considerations, Mr. Byers said.
"It was important for the Melberger family for that legacy to continue," Mr. Byers said. "He's been a mentor and a friend. He built this company."
Mr. Melberger said he had not been involved in day-to-day operations at Diversified for three years and will concentrate now on his real estate management and development company, GreenSpace Properties.
Diversified expanded vigorously in recent years, spending about $28 million on three acquisitions in 2009 and 2010. The acquisitions, in North Carolina and New Jersey, moved Diversified more firmly into the health care field and added printing, electronic billing and more data-processing capabilities. In 2012, the company opened facilities in Portland, Ore., Minneapolis, Hartford, Conn., and Columbia, S.C.
Diversified has about 800 employees in 22 locations, including about 230 at the Scranton headquarters and 70 at three other regional locations.
Company revenue expanded by 16 percent in 2012 and double-digit growth is projected this year, Mr. Byers said. Diversified will invest $15 million in technology and infrastructure improvements over the next two years, he said.
"What we do resonates with the market," Mr. Byers said.
The company will continued to be known as Diversified before eventually changing to EDM America, Mr. Byers said. Diversified has an established name in its industry, he said, and the changes will affect everything from email and marketing to company stationery, uniforms and trucks.
"It's not something that happens overnight," Mr. Byers said.
Contact the writer: jhaggerty@timesshamrock.com