Two electronic document management software companies — Axacore Inc. and Scrypt Inc. — are set to merge.
Terms of the transaction have not been made available. The deal will become effective on Dec. 31 and the combined entity will operate under the Scrypt name.
Though both companies have EDM technology, San Diego-based Axacore focuses on mortgage lending documents, while Scrypt of Austin, Texas, provides document support for healthcare providers. The two had already partnered for the last five years, according to Axacore vice president Steve DeBlasio.
During that time, Axacore had developed some technologies for Scrypt's platform. But now as a combined company, DeBlasio expects the two firms will be able to innovate faster.
"That's kind of the beauty of it from a customer standpoint," DeBlasio said in an interview, adding that end users will see little change in their service aside from it being, "faster." "They've created certain technologies that could be explored for use in the mortgage space," DeBlasio added.
All 40 combined employees of both companies will be retained and Aleks Szymanski, Scrypt's current chief executive officer, will retain his position to lead the combined companies. Nick Basil, Axacore's chief technology officer, will assume that role with Scrypt.
"Put simply, together, we are more formidable," Szymanski said. "Both Scrypt and Axacore have been enormously successful in creating compliant cloud and on-premise products for the healthcare and lending industries respectively."
"We're not going anywhere," DeBlasio said. "No one's cashing out, no one's running for the hills."
The new Scrypt will retain its medical document business as it expands into electronic lending documents.