RESTON, Va., Oct. 9, 2018
/PRNewswire/ -- MAXIMUS (NYSE: MMS), a leading provider of
government services worldwide, announced today that it has signed a
definitive asset purchase agreement to acquire certain assets of
General Dynamics Information Technology's large-scale,
citizen-engagement centers in the U.S. Federal civilian market. The
acquisition is expected to strengthen MAXIMUS position in the
administration of federal government programs across the United States. The $400 million all
cash transaction is expected to close in mid-November and is
subject to customary closing conditions.
This acquisition is a natural fit for MAXIMUS and expands its
reach in the delivery of citizen services. The acquisition enables
greater economies of scale and brings enhanced technology and added
operational capabilities that will benefit the entire MAXIMUS
portfolio.
"As a leader in business process management and the delivery of
citizen services, MAXIMUS is strengthening its position with
some of the largest mission-critical federal civilian programs,"
said Bruce L. Caswell, President and
Chief Executive Officer of MAXIMUS. "This deal aligns with our
MAXIMUS digital modernization strategy and we remain keenly focused
on improving the citizen experience for critical government
programs while driving long-term innovation to meet evolving
program demands."
The associated assets included in the asset purchase agreement
had revenue of approximately $670 million for the twelve
months ended June 2018. This revenue is primarily tied to cost
reimbursable contracts and accordingly, operating margins typically
average in the mid-single digit range.
MAXIMUS expects that the transaction will close in mid-November,
subject to customary closing conditions. MAXIMUS currently
anticipates that the assets associated with this transaction will
generate approximately 10.5 months of revenue for its fiscal
year 2019 in the range of $575 million to
$600 million. The transaction is expected to be accretive by
$0.10 to $0.15 of diluted earnings per share in fiscal
year 2019 after consideration of one-time expenses, interest,
non-cash charges, and cost synergies.
MAXIMUS will provide formal guidance for fiscal 2019 on
November 20, 2018, concurrent with reporting its results
for its fourth fiscal quarter and year-ended
September 30, 2018.
About MAXIMUS
Since 1975, MAXIMUS has operated under
its founding mission of Helping Government Serve the
People®, enabling citizens around the globe to
successfully engage with their governments at all levels and across
a variety of health and human services programs. MAXIMUS delivers
innovative business process management and technology solutions
that contribute to improved outcomes for citizens and higher levels
of productivity, accuracy, accountability and efficiency of
government-sponsored programs. With more than 20,000 employees
worldwide, MAXIMUS is a proud partner to government agencies in
the United States, Australia, Canada, Saudi
Arabia, Singapore and the
United Kingdom. For more
information, visit maximus.com.
Statements that are not historical facts, including
statements about the Company's confidence and strategies and the
Company's expectations about revenues, results of operations,
profitability, future contracts, market opportunities, market
demand or acceptance of the Company's products are forward-looking
statements that involve risks and uncertainties. These
uncertainties could cause the Company's actual results to differ
materially from those indicated by such forward-looking statements
and include reliance on government clients; risks associated with
government contracting; risks involved in managing government
projects; legislative changes and political developments;
opposition from government unions; challenges resulting from
growth; adverse publicity; and legal, economic, and other risks
detailed in Exhibit 99.1 to the Company's most recent Annual Report
filed with the Securities and Exchange Commission, found on
maximus.com.
CONTACTS:
Media:
Blake Travis: 619.884.4228
blaketravis@maximus.com
Investors:
Matt Burns: 703.251.8530
matthewsburns@maximus.com
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SOURCE MAXIMUS