The PeggyBank brand will remain intact, but the operation will be moved to a town called Torrance in the Los Angeles area. Terms were not disclosed.
Jim Simon said he has a tinge of mixed feelings—excitement for sure.
“It’s bittersweet,” the PeggyBank co-founder told SPN of the merger Wednesday. “They reached out to us and we had some components that they had and we were missing and we had some that they were missing.
“It makes sense.”
ScanDigital is a seven-year-old company that was founded and bootstrapped by CEO Anderson Schoenrock. The merger and acquisition talks began around July and were finalized earlier this month.
PeggyBank, an operation that had 30 employees at its peak, will benefit from the production capacity of ScanDigital. The company has more than 50 employees and more than $10 million in revenue. Meanwhile, PeggyBank was struggling to keep up with customer demand that grew quickly, Simon said.
“They can turn around orders faster than we can,” he said.
PeggyBank brings its PeggyBank Vault to the table, a cloud service where the old media is instantly uploaded to a cloud service. ScanDigital had only sent out CDs and DVDs in the past.
The idea for PeggyBank came from years of Simon converting old family photos and videos into digital files as a gift for his siblings. Later, a summer camp needed help converting old media for an anniversary celebration. Just like that, he had his first paying customer, Simon told SPN in 2011 at the time of the company’s launch.
He said the company set itself apart from the few other competitors who were just putting the content on DVDs.
“If you’re just moving contents from one physical space to another, you’re still not going to use them,” Simon (right) said in 2011. “You’re just going to put them back in the drawer, in the box, stick them in the closet or the basement where they were before.”
While PeggyBank moves to L.A. Thursday, Simon will still live and maintain an office in Omaha. Some PeggyBank employees have been offered jobs if they want to move to California but others have chosen to move on, Simon said.
ScanDigital is offering Nebraska customers 10 percent off with coupon code NEBRASKA10 for a limited time, according to the website.
Watch Jim Simon pitch PeggyBank at 1 Million Cups last year:
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