EDA JOINS ARCHIVE SYSTEMS ON TOUR OF FAIRFIELD HEADQUARTERS
TRENTON, N.J. (September 4, 2007) – The New Jersey Economic Development Authority (EDA) joined representatives of Archive Systems, Inc. on a tour today of its headquarters in Fairfield Borough. Earlier this year, EDA converted $250,000 of Archive’s debt to equity, exercising the EDA’s new approach to technology investment. In November 2006, EDA closed a $1-million Edison Innovation Fund investment to help Archive leverage its investment in document storage as it transforms itself into a high technology company providing more effective ways to automate paper-based processes.
The Edison Innovation Fund, a key element of Governor Jon S. Corzine’s Economic Growth Strategy, was created to support technology and life science companies throughout their discovery, development and commercialization stages. The EDA, in consultation with the New Jersey Commission on Higher Education and the New Jersey Commission on Science and Technology, is responsible for managing the $150 million fund. The fund will leverage $350 million in private capital that will be targeted to emerging companies as well as existing mid-sized and large technology and life science businesses.
“Investing in Archive Systems is just one example of how the Edison Innovation Fund is working to ensure New Jersey’s technology and life sciences companies are able to compete in the global, high-tech economy, while placing the State in a position to see a greater return on our investments,” said EDA Chief Executive Officer Caren S. Franzni. “Archive’s state-of-the-art facility will help ensure its continued success, and we look forward to watching them grow as we work toward creating a more vibrant state economy.”
Archive Systems, Inc. is the first company in the state to take advantage of EDA’s new investment approach, which converts debt to preferred stock. The EDA will continue this approach on a case-by-case basis with the most promising Edison Innovation Fund investments, Franzini said. Its investment agreements with technology and life sciences companies through the Edison Innovation Fund gives the EDA the right to convert debt to preferred stock.
“The EDA’s conversion of debt to preferred stock in Archive Systems is a win-win opportunity to take advantage of the tremendous upside innovative technology companies offer,” said EDA Director of Technology and Life Sciences Kathleen Coviello. “It is critical that a sustainable source of funding is available to support these companies as they grow in New Jersey.”
“We are thrilled to have the EDA on board at such a critical time in the development of Archive Systems,” added Rick Kushel, CEO of Archive Systems, Inc. “The EDA’s investment demonstrates New Jersey’s commitment to high-tech companies and provides the foundation for this state to become a global technology leader.”
Fairfield-based Archive Systems, Inc., founded in 1991, is a full-service document management company that provides off-site, hard copy records storage and digital services as well as a web-based, hosted document imaging and workflow automation solution. The $1-million investment from the EDA was made for five years at a fixed interest rate of 4 percent. As a result of the loan, Archive was able to add several new positions to the company, growing the organization to over 220 associates.
The EDA is an independent, self-sustaining state financing and development agency that works to promote economic growth, job creation and the revitalization of New Jersey’s communities with financing assistance, technical support and entrepreneurial training, and real estate development activities.
For information on the Edison Innovation Fund, visit the state’s business portal at http://www.state.nj.us/njbusiness/start/inc/progin/ef.shtml.