Maximus to Buy Citizen-Engagement Centers From General Dynamics

   By Colin Kellaher

Maximus Inc. (MMS) on Tuesday said it agreed to buy U.S. federal citizen-engagement centers from a unit of General Dynamics Corp. (GD) for $400 million in cash.

The Reston, Va., manager of government health and human-services programs said the assets involved in the deal generated about $670 million in revenue for the 12 months ended June 30, with operating margins averaging in the mid-single-digit range.

Maximus in August said it expects revenue of $2.4 billion to $2.44 billion for its fiscal 2018, which ended Sept. 30.

Maximus said it expects the acquisition, which increases its position in the administration of federal government programs across the U.S., will boost fiscal 2019 adjusted per-share earnings by 10 cents to 15 cents.

The company said it expects to complete the acquisition in mid-November.

Write to Colin Kellaher at colin.kellaher@wsj.com

(END) Dow Jones Newswires

October 09, 2018 09:45 ET (13:45 GMT)

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