MindShift acquires outsourcer Orbit Systems; The Mendota Heights firm runs two data centers for about 100 companies.(BUSINESS)

Byline: STEVE ALEXANDER; STAFF WRITER

Orbit Systems, a privately owned Mendota Heights computer services outsourcing firm, is being acquired by Virginia-based MindShift Technologies for an undisclosed sum.

Orbit, founded in 1999, has 54 employees who run two data centers serving about 100 small and medium-sized Twin Cities corporations, said CEO Steve McFarland.

All employees will remain in their current jobs, and McFarland will become senior executive officer of the parent company's Midwest operations. In addition, the Twin Cities Orbit operations plans to hire another 12 people in 2011.

McFarland said Orbit did well during the recession. "We've picked up business from other companies that were not as well-positioned as we were to weather the economy," he said.

Orbit is being acquired as part of a trend for larger computer outsourcing firms such as MindShift to expand geographically, McFarland said. In addition, MindShift and Orbit have discussed opening a satellite office of Orbit in the Phoenix area later this year. If that happens additional workers will be hired in Arizona.

Orbit serves a cluster of Phoenix and Tucson, Ariz., branch offices of Minnesota-based companies, McFarland said. Orbit also has a scattering of customers in Wisconsin and Illinois.

Today Orbit's business is growing into "cloud computing," in which outsourced computer services are available on demand for only the time period in which they are needed.

"Offering cloud services takes a significant investment in time, money and resources, and we took that step," McFarland said. "MindShift was also doing it, so we both had similar core businesses."

Orbit also has tried to differentiate itself with easy-to-use controls for customer PCs.

"We've taken it to the next level. Clients can run their businesses with only an Internet connection and a Web browser," McFarland said. "With that they can manage their information, connect with employees, collaborate with customers and manage their software applications."

Steve Alexander - 612-673-4553